Dick’s Sporting Goods’ Focus on Experiential Retail Boosts Q3 Sales
Dick’s Sporting Goods spent the early part of 2021 focusing on experiential retail and bringing products to consumers in new ways, as shoppers returned in higher numbers to stores when the spread of COVID-19 began to slow down and more people were vaccinated against the virus.
That plan has paid off in a major way for the sporting goods retailer, which reported on Tuesday (Nov. 23) that its 2021 third-quarter sales for the three-month period ending Oct. 30 were $2.75 billion, up 13.9% from the same time a year earlier and up 40% from two years ago.
“Our strategies continue to work as we reimagine the athlete experience in our core business and with new concepts,” said Ed Stack, executive chairman, in the company announcement. “As we said before, we believe this will be the most transformational year in our history, and we expect to continue this transformation into 2022.”
eCommerce sales for Dick’s were up 97% from two years ago and 1% from the same time in 2020, while the company’s eCommerce penetration has grown from 13% of total net sales in Q3 2019 to 19% for the third quarter of this year, down from about 21% in the third quarter of 2020.
“Consumer demand remained strong, and our differentiated product assortment continued to drive exceptional sales and merchandise margin momentum,” said Lauren Hobart, president and CEO, in the company announcement. “Our fourth quarter is off to a strong start, and we are pleased to increase our full-year outlook for the third time this year. Looking ahead, we remain very confident in the longer-term prospects of our business.”
Related news: Dick’s Sporting Goods, Nike Connect Loyalty Programs
Dick’s Sporting Goods and apparel brand Nike recently announced a “connected partnership” to give customers access to exclusive products, experiences and offers by linking their Dick’s Scorecard and Nike Membership accounts through the Dick’s mobile app and shopping an expanded selection of Nike footwear and apparel.
Dick’s House of Sport opened in Rochester, New York in April as a place for more experiential athletic experiences, and added a location in Knoxville, Tennessee earlier this year. Its goal is to “explore the future of retail through multi-sport experiences inside and outside the store.”