1. Stores & Formats

Dick’s Doubles Down on House of Sport Format, Planning 19 New Locations by 2024

Through a combination of converting existing stores and building at least 10 new stores next year, Dick’s Sporting Goods will add at least 19 House of Sport locations by 2024. The retailer also plans to exit its Field & Stream banner; after closing 12 of those stores in Q4 2022, which ended Jan. 28, 2023, the retailer will convert the remaining 17 stores to House of Sport or larger-format Dick’s stores.

“Dick’s House of Sport will be the primary driver of square footage growth,” said Navdeep Gupta, CFO at Dick’s Sporting Goods in a conference call discussing Q4 and full-year 2022 financial results. “In 2023, we will open nine new Dick’s House of Sport locations, eight of which are existing Dick’s and Field & Stream combo store conversions along with one relocation.”

The retailer also plans to expand its Golf Galaxy banner: “In 2023, we will grow the footprint of our Golf Galaxy business through the Golf Galaxy Performance Center and convert temporary value chain stores to permanent locations,” said Gupta. “In addition, we will convert over 100 stores to premium full-service footwear, taking this elevated athlete experience to over 75% of our Dick’s locations.”

Dick’s has been diversifying the formats of its 850 total stores over the past few years, most recently with its February 2023 acquisition of Moosejaw from Walmart. The retailer:

Introduced its House of Sport concept store in April 2021;

Debuted its Going, Going, Gone! discount stores in May 2021;

Launched its Golf Galaxy format in August 2021; and

Announced plans in September 2022 to open four Public Lands stores.

The retailer’s expansion plans come on the heels of a fairly strong fiscal year: net sales rose to $12.4 billion, up from $12.3 billion in fiscal 2022 (despite a comp store sales decline of 0.5%).

Dick’s executives are bullish on the retailer’s prospects for the coming year. “Our 2022 results provide a strong foundation upon which we will build in 2023 and well into the future,” said Lauren Hobart, President and CEO of Dick’s Sporting Goods in a statement. “In 2023, we will grow both our sales and earnings through positive comps, a return to square footage growth and higher merchandise margin. Our consistent performance and financial strength position us to increase the rate of investment in our business to fuel long-term growth opportunities and also return significant capital to shareholders.”

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