New Dick's Sporting Goods Concept Store

[phade]

Looks like they dove into BPS and Cabela's turf for a fight.

 

They are opening Field & Stream stores now. One opens near their HQ in PA and later in Erie, PA. Won't be long before NY gets one with the historical context of Dick's Sporting Goods here. The one location in Erie was supposed to be a Cabela's and apparently Dick's came in and overtook it somehow...Cabela's is suing from what I read.

 

 

[WNYBuckHunter]

http://www.bizjournals.com/pittsburgh/news/2013/08/14/photos-inside-the-new-field-stream.html

 

 

[Woodsman20]

Cool competition is good.

[phade]

Rochester will get one...mark my words.

 

Positioned between Cabelas in B-lo and BPS in Auburn.

[ants]

The Gander Mtn. in Cicero (Onondaga Co.) is being turned into a "Fire arms super store" according to the store managers. They are expanding their fire arms section 10 fold and are going to have a separate used fire arms section with a "huge selection". Supposed to be done by October.  We'll see.

[PWGUNNY]

I still like Cabela's more.

[phade]

I like Cabelas too. Fun to go to their stores.

 

But, when Dick's opens these stores en masse...Cabelas is going to have problems. Dick's is a much better run company. They excel at logistics and leveraging relationships. Cabelas success is nothing to sneeze at, but it's not in the same league as Dick's.

 

When Dick's starts throwing around its projected revenue weight of 6.2B...Cabelas will be in trouble. At best, Cabelas is in the 2.5B range with the only thing they hang their hat on being the catalog/online business. Their stores while nice, only bring in a fraction per sq ft as compared to Dick's. It's easy to become a great website...not so much a retail footprint. Dick's has nearly 500 stores....Cabela's....10% of that. Dick's is investing heavily into its website business after years of outsourcing.

 

When Dick's starts undercutting the pricing on similarly sold products...Cabelas will be forced to differentiate themselves or drop prices to compete and it simply cannot afford to do that. Seeing as how Cabelas retail plans involve smaller stores...such as the one going in Buffalo...they're basically jumping into a shark tank and steering toward Dick's targeted demographics/store sizes.

[pewlodar]

I understand what you're saying about both stores but the one thing Cabela's has over Dick's (in my opinion) is quality of the products and availibility. Tink's is Tink's no matter where you get it but the clothing selection doesnt compare. Also, at Dick's if you dont buy it pre-season they figure you dont need it.

[WNYBuckHunter]

That wont be the case with the larger stores, you can bet on that. Inventory will be just like BPS/Cabelas. Phade is right, Dicks knows what they are doing.

[MACHINIST]

The only problem I had/have with Dicks is their stock is usually low at the time I am there.

[phade]

I understand what you're saying about both stores but the one thing Cabela's has over Dick's (in my opinion) is quality of the products and availibility. Tink's is Tink's no matter where you get it but the clothing selection doesnt compare. Also, at Dick's if you dont buy it pre-season they figure you dont need it.

 

You are missing the point...these are straight up hunting, fishing, camping  destination stores. Not sporting goods retail stores.

 

6.2B will buy much much more quality, selection, and availability than 2.5B will buy. And, as I noted about their logistics capabilities...they lead the industry in it. They're pioneers in JIT, LSS, and nearly every other retail, warehousing, manufacturing, and shipping practice...they're trucks arrive on location ON THE MINUTE, they have real-time stock indexing, and they force chargebacks to suppliers and manufacturers when a sticker is in the wrong place on a shipping box because they can (that's what 6.2B can do). They're as nearly as efficient as Wal-mart is.

 

My master's level thesis was a business and financial analysis of Dick's Sporting Goods and its competitors. Trust me when I say Cabela's is in for a world of hurt in 5 years or so. It is a good company, but it's running up against a giant.

[phade]

The only problem I had/have with Dicks is their stock is usually low at the time I am there.

 

You might be surprised, but that's on purpose. Their analytics drive stock levels and they have very little stock laying idle. It's either sold or in the process of being sold. What does that do? Reduces cost...inventory laying around is money not yet collected on the bottom line and not earning the company more money.

 

You can bet, however, that this practice will be tweaked to the new store design. The stock levels will be sufficiently calculated. And, prices will likely be better.

Edited August 15, 2013 by phade

[Fletch]

Phade very good info and I agree. I have always been impressed by DicksSG business model. And with their score card, always having coupons and regular discounts if you shop smart you can get a way better price on things. I am not sure all that will be available at Field and Stream though.

 

My local Gander is useless, Cabellas is 3 hours away in PA and BPS close to an hour away and poorly stocked and staffed. I would love to see F&S here in Syracuse some day.