DICK'S Sporting Store Expansion on a Roll - Analyst Blog

In line with its strategy of achieving growth via expansion, full-line sporting goods retailer DICK'S Sporting Goods Inc. DKS announced the opening of its new store in Pleasant Hill, CA.

The new DICK'S Sporting store located at the Crossroads shopping center in Pleasant Hill will be its 34th outlet in the state and the 567th store across the country. The celebrations to mark the opening of this store will commence on May 9 and extend over the weekend. Also, the store will remain opened for additional hours over the same time frame.

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 Feb 1, 2014, DICK's Sporting operated 558 stores in 46 states, 79 Golf Galaxy stores in 29 states and e-Commerce websites and catalog operations.

In order to attract customer traffic to its new store during the celebration period, DICK'S Sporting announced a range of lucrative giveaways. The company will distribute free Tech T-Shirts manufactured by Under Armour Inc. UA to the first 100 people in queue on the opening day. Also, the customers who reach early will get an opportunity to open the DICK'S Sporting Goods Gift Locker, on all 3 days. 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.

Additionally, to lure visitors, the company has invited celebrities like Justin Tuck and Rollie Fingers to make special appearances at the new store on Saturday and Sunday, respectively.

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 remodeling efforts, launch of shop-in-shop facilities and recruitment of more talented 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 late September, DICK'S Sporting announced its plans to increase its retail store count to 800 by the end of fiscal 2017 from 518 at the end of fiscal 2012. Further, the company will continue remodeling its existing stores in order to keep them up-to-date and productive.

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.

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 while attracting newer ones and effectively promote its products.

Other Stocks to Consider

DICK'S Sporting currently carries a Zacks Rank #3 (Hold). Other better-ranked stocks in the retail sector that are worth a look include Bon-Ton Stores Inc. BONT and Rite Aid Corp. RAD, both holding a Zacks Rank #1 (Strong Buy).