DICK'S Sporting Ramps Up Store Expansion, Adds 5 Outlets
DICK'S Sporting Goods Inc.’s (DKS) expansion strategy is in full swing. Yesterday, the company announced that it will open 5 new stores, one each in Patchogue, NY, Savannah, GA, Federal Way, WA, Muncie, IA and Palmdale, CA.
The new Patchogue store, to be housed at Gateway Center II, will be New York’s 38th outlet. The new Savannah store on Market Walk will be the company’s 18th outlet in the state. The Federal Way store is to be located in The Commons mall, and will mark Washington’s 6th outlet. In Muncie, the new store will be seen at Center Shoppes, and will be the 18th one in Indiana. Finally, located at Antelope Valley Mall in Palmdale, the fifth new store will be California’s 36th outlet.
The addition of these stores brings the total DICK'S Sporting store count in the country to 587. The celebrations to mark the opening of these new stores will commence on Oct 3 and continue over the weekend.
The store offerings will include over 40 suitable in-store services provided by DICK'S Sporting certified PROS in sports and outlook specialties including Golf, Bike and Fishing. Moreover, the new locations will be highlighted by Under Armour, Inc. (UA) and Nike, Inc. (NKE) shops. It will also include other athletic clothing and footwear along with the latest equipment for team sports, fitness, camping, hunting and fishing.
In order to attract customers to its new stores DICK’S Sporting announced a range of lucrative giveaways during the celebration period.
The company will distribute free Reebok Play Dry T-Shirts to the first 100 people in queue on the opening day. Also, the early birds will get an opportunity to open the DICK'S Sporting Goods Gift Locker on all three days. Moreover, on Saturday and Sunday, it plans to give free Mystery Gift Cards worth $5–$500 to the first 100 adults in queue.
Additionally, to lure customers, the company has invited celebrities like Chris Snee, Blair Wiggins, Jay "Bone" Buhner, Blaine Bishop, A.C. Green and C.J. Wilcox to make special appearances at the new stores on different days.
We believe that the full-line sporting goods and apparel retailer will benefit from its in-store action and online growth strategies. The company’s in-store remodeling efforts, launch of shop-in-shop facilities and recruitment of more competent sales personnel have continually boosted its top line. Furthermore, the company is aggressively enhancing its eCommerce capabilities to increase sales as well as market share in online retailing.
DICK’S Sporting’s strategic measures to strengthen its store base and the use of technology to provide better services are likely to improve its relationship with present customers as well as attract new ones.
DICK’S Sporting currently carries a Zacks Rank #3 (Hold). A better-ranked stock in the same industry is Barnes & Noble, Inc. (BKS), which carries a Zacks Rank #1 (Strong Buy).
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