Full-line sporting goods retailer, DICK’S Sporting Goods Inc. (DKS - Analyst Report) took another small step in its store expansion plan by announcing the opening a new outlet at Chico Mall in Chico, Calif. Celebrations to mark the store’s opening will begin on Jul 12, and last through the weekend.
Located at Chico Mall, 1922 E.20th Street, the new store will be DICK’S Sporting’s 29th store in California and 525th store in the country. This latest store’s offerings will include over 40 convenient in-store services carried out by DICK'S certified PROS in Golf, Bike, Hunting, Fishing, Team Sports and others.
During fiscal 2013, the company plans to open 40 new namesake stores and relocate 1 of them. Of the total DICK’S Sporting stores to be opened, 7 are slated for the second quarter. Additionally, the company intends to complete the full remodeling of 4 DICK's Sporting Goods stores and the part remodeling of 75 stores. It also intends to open 1 new Golf Galaxy store as well as relocate 1 Golf Galaxy store in fiscal 2013.
In the long term, the company expects to open nearly 400 stores to fulfill its targeted total store count of about 1,100 in the United States.
We believe DICK’S Sporting continues to progress well with its growth initiatives, which include expanding store base and incorporating technological advancements to better serve its patrons. The company leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, enable the company to generate healthy sales and gain a competitive edge over rivals such as Foot Locker Inc. (FL - Analyst Report), Big 5 Sporting Goods Corp. (BGFV - Analyst Report) and Wal-Mart Stores Inc. (WMT - Analyst Report).
Apart from expanding its store base, DICK’S Sporting is focusing on customer needs, in order to generate opportunities that will increase 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 consumers to locate DICK’S Sporting stores in any particular area and buy goods directly, using the application.
We believe that this Zacks Rank #3 (Hold) 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 as well as effectively promote the products.