By Bob Johns
The sporting goods retailer is using rapid store expansion and omni-channel efforts to continue its growth path.
DICK’S Sporting Goods, the largest U.S. full-line sporting goods retailer, continues to expand and show impressive sales growth through omni-channel efforts. The company reported same-store sales growth of 3.3 percent and net sales growth of 6.7 percent for the 2013 third quarter. All of this good news comes at a time when retailers are struggling to connect to the consumer and capture sales. "Despite the continued challenging consumer environment, we delivered better than expected results in the third quarter, exceeding both our sales and earnings expectations. The marketing efforts, improved customer experience and selective pricing initiatives we began in the third quarter were successful in driving traffic and sales, but at slightly lower than anticipated margins," said Edward W. Stack, chairman and CEO. "We remain excited about the long-term opportunities in our business that we presented at our analyst day in September, and we will continue to drive towards those goals."
One of Stack’s main focuses is to continue store expansion. The company recently completed its store development program, opening a total of 40 new DICK'S Sporting Goods stores, one new Golf Galaxy store, two new Field & Stream stores and one new True Runner store. The Company also relocated one DICK'S Sporting Goods store, repositioned one Golf Galaxy store and completed four full and 75 apparel remodels of DICK'S Sporting Goods stores in 2013. This is a part of their planned $299 million investment in capital expenditures for the year. The company now operates 638 stores in 45 states, including the 2 new Field & Stream locations, which is an entirely new venture. The new stores feature a large assortment of outdoor equipment, accessories, and services in hunting, fishing, and archery. The store will carry top brands including, Hoyt, Remington, Sitka, Sage, Simms, and Yeti. The Field & Stream store concept was created for individuals who are passionate outdoors enthusiasts, and will employ members of that audience who can share their personal experiences and expertise.
The company has gone through some major changes. It has remerchandised the fitness apparel category, expanded its ship-from-store omni-channel fulfillment model by adding categories and increasing efficiencies, and completed four complete store remodels.
DICK’S e-commerce sales also continue to climb, accounting for 6.5% of total sales in the quarter, and are increasing profitability. Additionally, the company will serve as the exclusive e-commerce provider of licensed merchandise and sporting goods for ESPN’s fan shop, leveraging an already growing relationship between the companies.
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