Recently, full-line sporting goods retailer DICK's Sporting Goods Inc. (DKS - Analyst Report) took its store expansion plan forward by announcing its plan to open a new store in South Plainfield, NJ and the opening of a remodeled outlet in Columbia, S.C. on Sep 8, 2013.
The celebration to mark the new store opening will commence on Sep 13 and extend over the weekend. Located at the Hadley Center, 4999 Stelton Road, the store will be the company’s 17th outlet in the state of New Jersey and 531st store across the United States. The store offerings will include over 40 suitable in-store services provided by DICK'S 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. The company will distribute Mystery Gift Cards in the range of $5–$500 to the first 100 adults in line on Friday and Saturday. Moreover, on Saturday, it plans to give a free Under Armour Inc.’s (UA - Analyst Report) Tech T-Shirt to the first 100 adults in line. On Sunday, it will distribute free Scratch & Win cards to the first 100 adults in line.
The remodeled outlet is located at 1110 Bower Parkway in Columbia. The refurbished 59,000 square feet store will now include specialized services and exclusive customer experiences throughout the Bike, Lodge and Golf departments.
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 DICK’s Sporting stores slated be open, 7 have already been opened in the second quarter while 20 will be opened in the third quarter.
The company also intends to open 1 new Golf Galaxy store and relocate 1 Golf Galaxy store in fiscal 2013. Furthermore, DICK’s Sporting wants to open 1 True Runner store and 2 new Field & Stream stores in 2013.
We believe that DICK’S Sporting continues to progress 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, enable 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 generate opportunities that will boost 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 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 present customers, attract new customers and effectively promote products.
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 Tractor Supply Company (TSCO - Analyst Report). Both these carry a Zacks Rank #2 (Buy).