Dick's Sporting Goods Competition
Now Viewing Dick's Sporting Goods's competition in: Sporting Goods Retailers (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company target a specific demographic? - Some target wealthier baby boomers while others focus on the youth market.
What types of marketing does the company do? - Newspaper advertising, inserts, direct mail, sales events, and sports sponsorships are typical.
Who are the company's main competitors? - Competitors include mass merchandisers, Internet-only competitors, and specialty sports stores.
How does the company price its products versus its competitors? - Some companies choose to be the price leader while others, such as Dick's Sporting Goods, price competitively and offer a price matching policy.
Does the company feature periodic price reductions to move inventory? - Many stores offer end-of-the-season sales to move merchandise.
Does the company target the female market? - Women make more than 50 percent of sport footwear purchases and half of the fitness equipment purchases, according to NSGA.
Does the company have mail-order or Internet sales? - Many sports participants prefer to buy equipment locally, but mail-order and Internet firms have larger selections.
Competitive Landscape
Demand is driven by population demographics and consumer income. The profitability of individual companies depends on merchandising and marketing skills. Large chains have an advantage in stocking a wide variety of goods. Small companies and specialty retailers can compete successfully by carrying a deeper product line in specialized sports, hiring highly experienced staff, offering repair services, or by serving a local market. The industry is fairly labor-intensive: average annual revenue per employee is about $135,000.
Business Challenges
CRITICAL ISSUES
Dependence on Consumer Income - The revenue of sporting goods stores is sensitive to the health of the economy, as most sports are a leisure activity. Spending on sporting goods correlates strongly with declines or gains in consumer income. During the 2008-09 recession, sporting good sales have declined, following years of growth after the 2001 recession. Sales were also flat during the 2001 recession.
Slower Growth of Athlete Population - Demographics play a big part in sporting goods sales, since population growth and age groups affect sport participation. The number of Americans ages 5 to 19, the most athletically active segment of the population, will increase 7 percent from 2000 to 2020. The more affluent and still active group, 20 to 45, will grow only 4 percent.
Industries Where Dick's Sporting Goods Competes
- Retail
- Sporting & Recreational Equipment Retail(primary)
- Apparel & Accessories Retail
- Footwear & Related Products Retail
- Nonstore Retail
- Catalog, Mail Order & Television Sales
