At the House of Sport in Pittsburgh’s Ross Park Mall, Ed Stack stands before an impressive showcase known as the “Footwear Deck,” which features around 2,400 pairs of popular brands like Nike and Under Armour. This extensive selection aims to offer a tactile shopping experience that online platforms can’t match. “People really want to feel it, touch it, try it on,” Stack remarks, emphasizing the importance of in-store experiences.
Dick’s Sporting Goods is doubling the size of their traditional stores with the House of Sport concept, which also includes unique features like climbing walls, batting cages, and sports fields. By 2027, the aim is to retrofit up to 100 of its 725 U.S. locations into this format, a significant investment anticipated to reach $2 billion.
Stack’s strategy comes at a time when numerous retailers are closing locations. Over 6,480 stores in the U.S. have shut down this year alone. In contrast, Dick’s is expanding, capitalizing on the post-pandemic growth in outdoor sports like golf and kayaking. Ed Stack’s approach of ‘productive paranoia’ pushes him and his management to always look forward and never settle.
Despite challenges in 2018, with stagnating sales and controversies like phasing out firearms, Stack has been resilient. Post-Parkland shooting, Dick’s restructured its inventory to focus on more profitable sectors like footwear and apparel, ultimately increasing profit margins significantly from 29% in 2017 to 35% in 2023.
Stack’s leadership has roots in family business since his teenage years. From a modest bait-and-tackle shop started by his father, Stack transformed the venture into a nationwide retail powerhouse. After overcoming a financial crisis in the mid-90s and other challenges, Dick’s has grown, with revenue jumping from $8.8 billion in 2019 to $13.3 billion projected this year.
Dick’s remains vigilant about future challenges, especially with potential import tariffs from the forthcoming administration. The company is pivoting towards its private brands and expanding its retail network. Simultaneously, it’s leveraging customer data to create targeted advertising opportunities, showcasing Stack’s continuous drive for innovation.
Moving forward, Dick’s House of Sport concept appears promising, not just transforming retail experiences but also dictating new expectations for brick-and-mortar locations. With plans to recoup investments within three years, Dick’s is positioning itself as a leader in the evolving retail landscape.
Ed Stack’s determination to innovate and adapt has allowed Dick’s Sporting Goods to not only survive but thrive in the competitive retail market. By embracing larger, interactive store formats and shifting focus toward higher-margin products, the company continues to build on its legacy of growth and resilience. Dick’s Sporting Goods exemplifies how strategic adaptations can drive success in a rapidly changing industry.
Source: Forbes
