Arts and crafts specialist Hobbycraft has launched a new small store format as it seeks to accelerate the expansion of its store estate.

  • Hobbycraft opened 6,000 sq ft store at Borehamwood this morning
  • The retailer aims to reach its 150-store target faster than planned
  • Hobbycraft’s next small-format store will open in Greenwich

The retailer has opened a 6,000 sq ft store in Borehamwood, Hertfordshire, today, which is half the size of its regular stores.

Hobbycraft chief executive Catriona Marshall reveals the retailer could open 30 of the smaller format in the Greater London area and will help it reach its target of 150 stores nationwide quicker.

The retailer has 83 stores at present and is gearing up to open another small format branch in Greenwich next month.

Marshall said the retailer could follow a strategy of opening the format in other cities where it already has stores as part of a “hub and spoke” strategy.

Speaking to Retail Week from the store opening, Marshall said the Borehamwood store “does not feel like a small store at all” despite having half the stock and is already being well received by customers.

Marshall: “I was really nervous and thought what if customers come in and go to their favourite area of the store and are crestfallen with range.”

Multichannel store

Despite the Borehamwood store being only 10 miles away from one of Hobbycraft’s highest turnover outlets, it is totally independent when it comes to stock replenishment.

Hobbycraft has focused on the store’s multichannel offer and has given staff tablets to help show customers the extended range online and help them order via its click-and-collect or order in-store services.

The retailer plans to roll out tablets to other stores next year.

Hobbycraft also said it is still committed to its larger store format because they provide “much more retail entertainment”.

An investment in CRM activity in the last financial year helped Hobbycraft increase total transactions 3.5% and also increase its basket size.

Earlier today Hobbycraft revealed its EBITDA had surged 25.9% to £6.8m and its turnover increased 8.9% to £141.1m in the year ending February 22.