DICK's to Open Renovated NC Store
In line with its plan of remodeling existing stores to keep them up-to-date and productive, DICK’s Sporting Goods Corp. (DKS) declared completing the refurbishment of its store in Cary, N.C. The outlet will be reopened on Sunday, Sep 19 with lucrative giveaways to attract customer traffic.
The company will distribute Mystery Gift Cards in the range of $5–$500 to the first 100 adults in line on the reopening day with one person winning the $500 card. Moreover, it plans to give a free Under Armour Inc.’s (UA) Tech T-Shirt to the first 100 adults in line.
The newly renovated store, which occupies a floor space of 56,000 square feet, will have additional specialized services and hands-on customer experiences in its Bike, Lodge and Golf departments.
We believe that the full-line sporting goods and 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. Furthermore, the company is aggressively enhancing its e-Commerce capabilities to drive sales as well as gain market share in online retailing.
In its recently concluded annual Analyst Day meet, DICK’s Sporting announced that it plans to increase its retail store count to 800 by the end of fiscal 2017 from 518 stores at the end of fiscal 2012. Further, the company will remodel its existing stores from time to time in order to keep them up-to-date and productive.
Additionally, the company will stay focused on maintaining strong relations with its vendors, introducing fashionable products and concentrating on high growth categories such as Women and Youth.
Moreover, DICK’s Sporting intends to increase its e-Commerce sales to nearly $1.1 billion by the end of fiscal 2017, from $292 million at the end of fiscal 2012. For this, the company will control its e-Commerce platform beginning with Golf Galaxy and Field & Stream in 2014, and DICK’s Sporting from fiscal 2017-end.
Apart from expanding its store base, DICK’S Sporting is focusing on customer needs to generate opportunities that will boost sales. In order to make the shopping experience a convenient one, the company has introduced a new mobile application for iPhones and Android Smartphones that enable customers to locate DICK’S Sporting stores in any particular area and buy goods directly, using the application.
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.
Other Stocks to Consider
DICK’S Sporting currently carries a Zacks Rank #5 (Strong Sell). Other stocks in the retail sector worth considering include Five Below, Inc. (FIVE) and Tractor Supply Company (TSCO). Both of these carry a Zacks Rank #2 (Buy).
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