Sporting goods retailer,
Dick's Sporting Goods Inc.
(
DKS
), opened three new stores on October 24 in different locations
across the United States, in keeping with its ongoing store
expansion strategy. The latest announcements include the opening
of stores at Westfield Wheaton in Wheaton, Maryland; at Center
Park in Aberdeen, North Carolina; and at Westridge Center in
Salinas, California.
Earlier this month, the company announced the debut of nine new
stores in various parts of the United States. Additionally, in
September, the company had opened ten stores at different
locations across the country. The opening of stores remains in
tune with the company's previously announced plan of inaugurating
21 stores in the third quarter and relocating 3 of them.
For fiscal 2012, the company plans to open approximately 38
Dick's Sporting Goods stores. Moreover, it plans to relocate
about five Dick's Sporting Goods stores and one Golf Galaxy store
in 2012. In the long-term, Dick's Sporting aims at opening 400
additional stores, targeting a total store count of about 900 in
the United States.
To date, Dick's Sporting operates about 511 stores in 44 states.
Additionally, the company operates 81 Golf Galaxy stores in 30
states.
We believe Dick's Sporting continues to progress well with its
growth initiatives, which include expanding its store base and
bringing in technological advancements to better serve its
patrons. The company's extensive network of stores helps it
further to gain market share while boosting its top line and
providing an competitive edge over its rivals, including
Foot Locker Inc.
(
FL
) and
Wal-Mart Stores Inc.
(
WMT
).
Apart from expanding its store base, Dick's Sporting is also
focusing on buyers' needs to generate growth opportunities that
will augment sales. The company aims at providing topnotch
shopping experience to its customers and has introduced a new
mobile application for iPhones and Android Smartphones.
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 help
attract and retain customers as well as promote its offerings.
Currently, we maintain our long-term Neutral recommendation on
the stock. Dick's Sporting Goods retains a short term Zacks #2
Rank (Buy rating) for the next 1-3 months.
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