Sporting goods retailer, Dick's Sporting Goods Inc. (DKS), is set to open four more stores, including two new stores and two relocated stores, in different locations nation-wide on October 17. The two new stores are slated to come up in Florida, at Shoppes at Alafaya in Waterford Lakes and at Seminole Towne Center in Sanford; while the relocated stores will be positioned in Pennsylvania, at Cranberry Crossroads in Cranberry Township and South Hills Village Mall in Upper St. Clair.
Earlier this month, the company announced the opening of five new stores at various parts of the United States. Additionally, in September, the company had opened ten stores at different locations across the country. The opening of stores remains in sync with the company’s previously announced plan of inaugurating 21 stores in the third quarter and relocating 3 of them.
For fiscal 2012, the company plans to open approximately 38 Dick's Sporting Goods stores. Moreover, it plans to relocate about five Dick’s Sporting Goods stores and one Golf Galaxy store in 2012. In the long-term, Dick's Sporting aims at opening additional 400 stores, targeting a total store count of about 900 in the United States.
We believe Dick's Sporting continues to progress well with its growth initiatives, which include expanding its store base and bringing in technological advancements to better serve its patrons. The company’s extensive network of stores helps it further to gain market share while also boosting its top line and providing an competitive edge over its rivals, including Foot Locker Inc. (FL) and Wal-Mart Stores Inc. (WMT).
Apart from expanding its store base, Dick’s Sporting is also focusing on buyers’ needs to generate growth opportunities that will augment sales. The company aims at providing topnotch shopping experience to its customers and has introduced a new mobile application for iPhones and Android Smartphones.
We believe that the company’s strategic measures of solidifying its store base and using technology to provide better customer services will enhance its relationship with clients and help attract and retain customers as well as promote its offerings.
Currently, we maintain our long-term Neutral recommendation on the stock. Dick's Sporting Goods retains a short term Zacks #3 Rank (Hold rating) for the next 1-3 months.
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