Could Expanded Depts. Push Dick’s Footwear Sales Over $2 Billion?
Full-line sporting goods retailer Dick’s Sporting Goods intends to add premium, full-service footwear departments to 100+ stores this year, bringing the upgraded shoe-buying experience to more than 60 percent of its doors and perhaps propelling the category to over $2 billion in annual revenues.
That lofty sales objective would require 9 percent, or $165.7 million, in footwear sales growth in 2021. But Nike’s recent decision to further pare back its wholesale partners, including cutting off Macy’s (not Finish Line departments), Big 5 Sporting Goods and DSW, could end up bolstering Dick’s footwear business this year. In FY20, according to the public company’s recently filed 10K, DKS’ year-over-year footwear revenues rose $22.9 million or 1.26 percent to $1,834.3 million.
Overall, the retailer generated a 9.9 percent increase in consolidated same store sales in FY20 that included a 17.1 percent increase in sales per transaction, 7.1 percent decline in transactions and annual ecommerce penetration of approximately 30 percent ($2.88 billion) versus approximately 16 percent ($1.4 billion) in FY19.
Next month, Dick’s is scheduled to debut its first experiential prototype in the Rochester, NY market. The store will focus on service and community and deliver elevated experiences for the banner’s customers as the retailer learns what added features and experiences deliver better ROI and stronger sales. Elsewhere, the chain intends open six stores this year, relocate 11 and open two Golf Galaxy stores while also converting two former Field & Stream banners to its new Public Lands concept.