Full-line sporting goods retailer DICK'S Sporting Goods Inc. (DKS - Analyst Report) remains focused on driving growth through expansion of its store base and incorporation of technological advancements to serve its clients better. In line with its strategic initiatives, the company recently declared the opening of a store in Panama City Beach, FL.
The new DICK’S Sporting store located at the Pier Park North shopping center in Panama City Beach Park will be the company’s 25th outlet in the state and the 559th store across the country. The celebrations to mark the opening of these stores will commence on Mar 7 and extend over the weekend.
The store offerings will include over 40 suitable in-store services provided by DICK'S certified PROS in sports and outlook specialties including Golf, Bike, Fishing and Team Sports. As of Nov 19, 2013, DICK’s Sporting operated 558 stores in 46 states, 82 Golf Galaxy stores in 30 states and e-Commerce websites and catalog operations.
In order to attract customer traffic to its new store throughout the celebration period, DICK’S Sporting has announced a range of lucrative giveaways. The company will distribute free Tech T-Shirts manufactured by Under Armour Inc. (UA - Analyst Report) to the first 100 people in line on Friday. Moreover, on Saturday and Sunday, it plans to give free Mystery Gift Cards in the range of $5–$500 to the first 100 adults in line.
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 efforts such as the remodeling of stores, launch of shop-in-shop facilities and recruitment of more sales personnel have boosted top-line growth. Furthermore, the company is aggressively enhancing its e-Commerce capabilities to increase its sales as well as market share in online retailing.
At its annual Analyst Day meet held in late September, DICK’S Sporting announced its plans to increase retail store count to 800 by the end of fiscal 2017 from 518 at the end of fiscal 2012. Further, the company will remodel its existing stores from time to time in order to keep them up-to-date and productive.
Additionally, the company will stay focused on maintaining strong relations with its vendors, introducing fashionable products and concentrating on high growth categories such as Women and Youth.
Moreover, DICK’S Sporting intends to increase its e-Commerce sales to nearly $1.1 billion by the end of fiscal 2017 from $292 million at the end of fiscal 2012. For this, the company will control its e-Commerce platform beginning with Golf Galaxy and Field & Stream in 2014, and DICK’S Sporting from fiscal 2017-end.
Apart from expanding its store base, DICK’S Sporting is concentrating on customer needs in order to boost sales. Further, to make customers’ shopping experience a convenient one, the company has introduced a mobile application for iPhones and Android Smartphones that enables 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.
Other Stocks to Consider
DICK’S Sporting currently carries a Zacks Rank #3 (Hold). However, other stocks in the retail sector that are worth a look include Francesca's Holdings Corp. (FRAN - Snapshot Report) and Skechers USA Inc. (SKX - Analyst Report). Both of these have a Zacks Rank #2 (Buy).