Comments by Dicks Sporting Goods (DKS) CEO, Ed Stack, in a recent Forbes write up:
"Stack predicts further consolidation in the sporting goods space, where the top five companies control only 16% of the market. He plans to grow by taking market share, which includes tackling Sports Authority, purchased by private equity firm Leonard Green & Partners for $1.3 billion, on its Florida turf. His next move will be into Texas and California; then to make Dick's more of a national brand through sports event sponsorships and a multiyear deal with ESPN."
No other sporting goods retailer as entrenched in CA as Sports Chalet. Hmmmmm....
Not clear what you think Dick's intention is here - to compete with SPCH or to buy them?
I have ALWAYS thought SPCH would be a perfect acquisition for DKS. Dicks has shown a desire to grow through acquisition as well as the skill to integrate acquisitions. Hopefully, current SPCH management can read the tea leaves and see the industry consolidation and agree to joining forces with Dicks. Current SPCH management is top rate and would do well to stick around and insure a smooth integration.
With the reorg, management at Sports Chalet holds the cards on this one. Voted best retailer to work for in US. I like that. Treat the employee's well and you receive back 10 fold. Founder gave away a ton of stock to long term employees yrs age. Anyone from CA recognizes the uniqueness and expertise only Sports Chalet has in CA. Visited Beverly Connection. Was told traffic was busier than last yr. Still shitty location, but the faithful still come.