Recently, full-line sporting goods retailer DICK's Sporting Goods Inc. (DKS - Analyst Report) took its store expansion plan forward by declaring the opening of a new store in Duluth, Minn. The celebration to mark the store opening will commence on Sep 6 and extend over the weekend.
Located at the Miller Hill Mall – 1600 Miller Trunk Highway, the store will be the company’s 9th outlet in Minnesota and 529th store in the United States. The store offerings will include over 40 suitable in-store services provided by DICK's Sporting certified PROS in Golf, Bike, Hunting, Fishing, Team Sports and more.
In order to attract customer traffic into its stores throughout the celebration period, DICK’s Sporting has announced a range of lucrative giveaways. On the opening day, the company will distribute Mystery Gift Card in the range of $5–$500 to the first 100 adults in line, while on the next day it plans to give a free Under Armour Inc.’s (UA - Analyst Report) Tech T-Shirt to the first 100 adults in line. On the last day of celebration, it will distribute free Scratch & Win card for the first 100 adults in line.
In its last earnings release, DICK’s Sporting reiterated its plans to open 40 new namesake stores and relocate 1 of them during fiscal 2013. Of the total number of DICK’s Sporting stores slated to be open, 7 have already been opened in the second quarter while 20 will be opened in the third quarter and the rest in the fourth quarter. Additionally, the company hopes to complete the remodeling of 4 DICK's Sporting Goods stores, while partly renovating 75.
The company also intends to open 1 new Golf Galaxy store and relocate 1 Golf Galaxy store in fiscal 2013. Furthermore, DICK’s Sporting plans to open 1 True Runner store and 2 new Field & Stream stores in 2013. In the long term, the company expects to open more than 400 stores to meet its targeted total store count of about 1,100 in the United States.
We believe that DICK’s Sporting is progressing well with its growth initiatives, which include expanding the store base and incorporating technological advancements to serve its clients better. The company leverages an extensive network of stores to effectively penetrate into target markets, which in turn, enables the company to generate healthy sales and gain a competitive edge.
Apart from expanding its store base, DICK’s Sporting is focusing on customer needs to facilitate a boost in sales. In order to make the shopping experience a convenient one, the company 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 existing customers, attract new customers and effectively promote products.
Other Stocks to Consider
DICK’s Sporting currently carries a Zacks Rank #4 (Sell). Other stocks in the retail sector worth considering include Five Below, Inc. (FIVE - Snapshot Report) and The Buckle, Inc. (BKE - Snapshot Report), both of which have a Zacks Rank #2 (Buy).