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Dick's Sporting Goods Inc. (DKS - Analyst Report), a full-line sporting goods retailer, leverages an extensive network of stores to effectively penetrate into its target markets, which in turn, enables the company to generate healthy sales and gain a competitive advantage over its competitors.

Following its rationale, the company announced the opening of its new store in San Diego, California. Dick's Sporting Goods, which competes with Foot Locker Inc. (FL - Snapshot Report) and Wal-Mart Stores Inc. (WMT - Analyst Report), currently operates through 25 locations (including the new store) in California.

The company continues to progress well with its growth initiatives, which includes expanding its store base and bringing in technological advancements to better serve its patrons. Earlier this month, the company announced the opening of nine new stores at different locations in the United States. The opening of stores remains in sync with the company’s previously announced plan of opening 21 stores in the third quarter and relocating 3 of these.

The company plans to open approximately 38 Dick's Sporting Goods stores in fiscal 2012. Moreover, it aims at relocating about five Dick’s Sporting Goods stores and one Golf Galaxy stores in 2012.

In the long-term, the company strategizes to open an additional 400 stores, targeting a total store count of about 900 in the United States.

Apart from expanding its store base, Dick’s is also focusing on buyers’ needs to generate growth opportunities that will augment sales. The company aims to provide topnotch shopping experience to its customers and has introduced a new mobile application for iPhones and Android Smartphones.

The app facilitates consumers to locate the company’s stores in any particular area and provides the ease of directly buying goods by using the application. Moreover, users will be rewarded 50 bonus points for downloading and indulging in the Dick's Sporting Goods brand on social media.

We believe that the company’s strategic measures of solidifying its store base and using technology to provide better customer services will enhance its relationship with clients and will help attract and retain customers as well as promote its offerings.

Currently, we maintain our long-term ‘Neutral’ recommendation on the stock. However, Dick's Sporting Goods retains a short term Zacks #2 Rank (Buy rating) for the next 1-3 months.

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