Dive Brief:
-
Illustrating that the athletics retail market is not slowing down, Dick's Sporting Goods is opening five new locations this month, according to a company press release.
-
The retailer is opening one Dick's Sporting Goods Store and four Warehouse Sale discount stores.
-
The addition of the new locations will bring the company's total store count to 728 in 47 states.
Dive Insight:
Dick's Sporting Goods continues to show that it is expanding in the midst of a difficult market.
The retailer announced the launch of two new store concepts in June — Overtime by Dick's Sporting Goods and Dick's Sporting Goods Warehouse. This marks an expansion of the latter, which first launched with five stores as a "temporary pop-up style shopping experience."
The Warehouse Sale locations will offer "deep discounts on customer-favorite apparel brands," with many items being offered at 70% off or more. This comes as the apparel category is in the middle of a shift, as much of the population is working from home, and sales for comfortable clothing and athleisure have skyrocketed.
These aren't the only store concepts Dick's is experimenting with, either. During the retailer's third quarter earnings report, in which CEO Ed Stack stepped down and took on the role of executive chairman and chief merchant, the sporting goods company also announced plans for an outdoors-focused concept dubbed Public Lands. It's set to debut in 2021, with Stack focusing on the concept during his transition out of the CEO role.
Dick's Sporting Goods Locations
| Store Type | Location | Opening Date |
|---|---|---|
| Dick's Sporting Goods | Concord, NC | Feb. 27-28 |
| Dick's Sporting Goods Warehouse Sale | Friendswood, TX | Feb. 17 |
| Dick's Sporting Goods Warehouse Sale | Oklahoma City, OK | Feb. 17 |
| Dick's Sporting Goods Warehouse Sale | Deer Park, NY | Feb. 24 |
| Dick's Sporting Goods Warehouse Sale | Kissimmee, FL | Feb. 24 |
Dick's Sporting Goods
The sports retailer has been among the few companies that have thrived in the middle of an economic recession triggered by COVID-19. In Q3, Dick's reported a "record-setting" 23.2% increase in same-store sales, and a 95% increase in digital sales. Net sales for that quarter were $2.4 billion, an increase of nearly 23% year over year.
Over the summer, analysts forecast that Dick's would continue to thrive despite the period of retail upheaval. "We are confident [Dick's] will be the sole surviving national sporting goods retailer post crisis," Susquehanna Financial Group analysts led by Sam Poser said in emailed comments from June.
One of the retailer's main competitors, Modell's Sporting Goods, filed for bankruptcy in the spring of 2020. The brand's intellectual property was later sold to Retail Ecommerce Ventures.
