The coronavirus-led temporary store closures have severely impacted retailers’ top line. While several companies have gone bankrupt, others have shut down businesses. Despite the gloomy scenario, DICK'S Sporting Goods, Inc. DKS has emerged as one of the retail companies that has managed to not only resume operations but is also gradually witnessing improved trends. Encouragingly, it is making every effort to expand its store network across the United States.
Notably, the company has been on a store expansion spree for quite some time now. It is set to launch six DICK'S Sporting Goods stores, two combination DICK'S and Golf Galaxy stores, and three DICK'S Sporting Goods Warehouse stores this month. Post the opening of these stores, the company will operate 732 DICK'S Sporting Goods stores, 97 Golf Galaxy stores and 14 Warehouse Sale stores in 47 states.
To commemorate the events, there will be a ribbon cutting ceremony and opportunities for customers to win exciting prizes. In this context, DICK'S Sporting Goods store at Lynchburg, VA commenced operations on Oct 3-4. Celebrations for the opening of stores at Wilmington, NC and Modesto, CA will take place on Oct 17-18. The opening of the other stores at Happy Valley, OR, Annapolis, MD and Houston, TX will be held on Oct 10-11, Oct 16-18 and Oct 23-25, respectively.
Further, combination DICK'S Sporting Goods and Golf Galaxy stores in Canton, OH and Fairfax, VA are likely to be launched on Oct 16-18 and Oct 30-Nov 1, respectively. It is worth mentioning that these stores will provide customers top notch in-store experience to customers and will feature exclusive product offerings in apparel, footwear and equipment. The stores will also showcase company's own private brands including DSG, Walter Hagen, CALIA by Carrie Underwood, Field & Stream and Fitness Gear, and other notable ones like Nike, adidas, YETI, The North Face, Callaway and TaylorMade.
As for its Warehouse stores, customers will be offered whopping discounts of 30-75% on select footwear and apparel brands. These stores at Monroeville, PA will be launched on Oct 7, while the ones at Olathe, KS and Royal Palm Beach, FL will open doors on Oct 28.
Apart from these, a limited number of Soccer Shops offering a unique and improved soccer experience will be introduced with the first store set to open in Oct 23 at Leawood, KS. These new stores will result in hiring of roughly 400 full-time, part-time and temporary associates. Moreover, the soccer shops will come with revamped collection of equipment and gear, including cleats, apparel, training aids and national and club team jerseys. Moreover, the stores will have in-store soccer experts to help athletes with their requirements.
Moving on, management has decided to host its first-ever Loyalty Appreciation Week namely 7 Days of ScoreCard. As part of this, the company intends to reward its ScoreCard and Scorecard Gold customers from Oct 5-11. This offers loyalty customers with an opportunity to earn points daily with ScoreCard Gold members having the opportunity to earn triple points for every purchase once in a year.
Prior to this, it launched two types of concept stores — OVERTIME by DICK'S Sporting Goods and DICK'S Sporting Goods Warehouse. This will bring the total number of outlet and clearance stores to 11 at nine different states. This move is in sync with its plans to expand outlet and clearance stores in a bid to offer popular athletic brands at discounted prices.
All said, we believe such well chalked out efforts are likely to aid the company’s top line and help sustain its stellar show. We note that this Zacks Rank #1 (Strong Buy) stock surged 52% in the past three months compared with the industry’s growth of 15.2%.
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