Dick’s Sporting Goods Inc., DKS, + 1.61%, announced Monday that a new concept store, Dick’s House of Sport, will open in Victor, NY on April 9th.
With a 17,000-square-foot outdoor turf field, climbing wall, batting cage, health and wellness area to help those recovering from injuries, and more, the business is experiential.
A second House of Sport will open later this year in Knoxville, TN.
Experiential Dick’s Soccer Shops are coming to selected locations from April 5th. The Soccer Shops offer the service of employees with sales knowledge in the sport and its equipment, an improved stud shop and much more.
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Dick’s has redesigned its Golf Galaxy locations to allow for customization, driving bays and access to advanced golf technology.
And Dick’s is also adding two warehouse sale locations that offer deep discounts.
With its new branches, Dick’s will have 730 locations in 47 states.
The latest improvements come as some of the biggest names in the sports category increasingly take steps to sell in-demand goods directly to consumers.
Baird, when upgrading Nike Inc. NKE on March 26, found + 1.95%, the next phase of the company’s Consumer Direct Offense strategy will include 150-200 small format stores in the US and Europe, as well as improved technology investments seamless transactions between stores and their digital channels.
“Direct-to-consumer / digital is now also generating margins and is likely to lead to further expansion in the coming years, especially on a larger scale,” said the analysts.
Baird rates Nike stock above average with a price target of $ 150.
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And Adidas AG ADS, + 1.71%, has just started a new collaboration with rapper Bad Bunny, the purchase of which requires a download of the company’s confirmed app. The app offers collaborations with other big names like Pharrell and Prada.
In a Stifel sports report for late February and early March, analysts found that delays in product delivery had led to a number of retailers being out of stock. Meanwhile, demand increased due to tax refunds and the NBA All-Star Game.
“Store stocks are very low, popular product shortages are noticeable in discussions with store staff, and consumers are turning to digital channels for the best availability,” the analysts said.
“We believe this scarcity dynamic is sustaining both consumer appetite for in-demand styles and acceptance of digital channels. App data suggests that acceleration towards digital has favored Nike, with daily average users of the SNKRS app increasing 139% year over year. “
In its most recent earnings report, dated March 9, Dick’s said its capital allocation plan includes spending between $ 275 million and $ 300 million focused on businesses, including the concept store, and technology investments.
The stores accounted for more than 70% of the retailer’s online sales in the fourth quarter, and the company says it is focused on the overall customer experience, whether digital or in-store.
Dick’s stock is up 35% in the past three months and up 334% over the past year.
The benchmark index S & P 500 SPX (+ 1.44%) has risen by 63.6% in the last 12 months.