Full-line sporting goods retailer DICK's Sporting Goods Inc. (DKS) remains keen on its growth plans via the expansion of its store base as well as by incorporating technological advancements to better serve its clients. Progressing with its growth initiatives, the company recently declared the opening of two new stores in the state of Georgia and the reopening of a revamped store in Leawood, Kan.
Located at the Lakeshore Mall in Gainesville and the Epps Bridge Centre in Athens, the new DICK’s stores will be the company’s 17th and 18th outlet in the state of Georgia and will expand its country-wide store count to 534. The celebrations to mark the opening of these stores will commence on Oct 4 and extend over the weekend. The store offerings will include over 40 suitable in-store services provided by DICK's certified PROS in Golf, Bike, Hunting, Fishing, Team Sports and more.
In order to attract customer traffic into its new stores throughout the celebration period, DICK’s Sporting has announced a range of lucrative giveaways. The company will distribute Mystery Gift Cards in the range of $5–$500 to the first 100 adults in line on Friday and Saturday. Moreover, on Saturday, it plans to give a free Under Armour Tech T-Shirts, which are manufactured by Under Armour Inc. (UA), to the first 100 adults in line. On Sunday, it will distribute free Scratch & Win cards to the first 100 adults in line.
On the other hand, the newly renovated store in Leawood, which occupies a floor space of 102,000 square feet, will have added professional services and tangible customer experiences in its Bike, Lodge and Golf departments. The outlet will be reopened on Sunday, Oct 6 with lucrative giveaways to attract customer traffic.
In its last earnings release, DICK’s Sporting reiterated its plans to open 40 new namesake stores and relocate 1 of them during fiscal 2013. Of the total DICK’s Sporting stores slated to open, 7 have already been opened in the second quarter while 20 will be opened in the third quarter. Additionally, the company expects to complete the remodeling of 4 DICK's Sporting Goods stores, while partly remodeling 75 stores.
The company also intends to open 1 new Golf Galaxy store and relocate 1 Golf Galaxy store in fiscal 2013. Furthermore, DICK’s Sporting proposes to open 1 True Runner store and 2 new Field & Stream stores in 2013.
We believe that the company’s strategic measures of consolidating its store base and the use of technology to provide better services will enhance its relationship with present customers, attract new customers and effectively promote products.
Further, the apparel retailer will benefit from its in-store actions and online growth strategies. DICK’s Sporting’s in-store efforts, such as the remodeling of stores, shop-in-shops facilities and recruitment of more sales personnel have boosted top-line growth. Simultaneously, the company is aggressively enhancing its e-Commerce capabilities to drive sales as well as gain market share in online retailing.
Other Stocks to Consider
DICK’s Sporting currently carries a Zacks Rank #4 (Sell). Other stocks in the retail sector worth considering include Five Below Inc. (FIVE) and Tractor Supply Company (TSCO). Both these carry a Zacks Rank #2 (Buy).
- Consumer Discretionary