Dick's Sporting Goods Inc
. (
DKS
), 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
)
and
Wal-Mart Stores Inc
.
(
WMT
)
, 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.
DICKS SPRTG GDS (DKS): Free Stock Analysis
Report
FOOT LOCKER INC (FL): Free Stock Analysis
Report
WAL-MART STORES (WMT): Free Stock Analysis
Report
To read this article on Zacks.com click here.
Zacks Investment
Research