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Good thread, found it really interesting! I am processing some research on DICK's Sporting Goods, 750 stores and 90% are their core brand. I knew the reality w
by everythingswan 8y ago
Good thread, found it really interesting!
I am processing some research on DICK's Sporting Goods, 750 stores and 90% are their core brand. I knew the reality was something along these lines but just didn't expect the % to be so small: "The Company's eCommerce sales penetration to total net sales has increased from 2.8% in fiscal 2010 to 10.3% in fiscal 2015."[1]
It's certainly growing every year for them, easy to see since it's a public company, but not at a tremendous rate like my news bubble or profession would have me believe. It furthers your point that brick & mortar are certainly not dead, or even dying, since many people still shop in-store.
Of note, a good portion of their 10k was devoted to omni-channel experience, which is the thinking that customers are customers and not defined by online or offline alone--they use both. Omni-channel strategies seem pretty basic at this point but also well worth their investment.
[1] https://www.sec.gov/Archives/edgar/data/1089063/000108906316000107/dks-10k_20160130.htm https://www.sec.gov/Archives/edgar/data/1089063/000108906316...
- degenerate 8y agoSport gear is very hands-on, so it makes sense to go into the store to choose your next running shoe / tennis racket / hunting rifle... instead of buying the wrong one online and having to return it.
- everythingswan 8y agoAbsolutely. And since they stock different brands, it's even more important to get the sizing right. I remember reading shoes and apparel made up a high portion of their gross sales. In general, my experience is that the higher the price, the longer and more intense the buying cycle is. It's not ground-breaking to think that but I also think it will indicate the last retail stores to bend at the will of online demand: cars, boats, engagement rings, etc.