Two new-concept Dick’s Sporting Goods stores bound for region

The Dick’s Sporting Goods chain is planning to open two of their Dick’s Going Going Gone! Clearance stores in Northeast Ohio, one in Aurora and the other in North Olmsted.

The walking is gone! The Pittsburgh-based company’s strategy is to reduce its own inventory until sale. This allows him to withhold sales from his unsold inventory instead of offloading them to an outlet business. The plan also allows the company to free up space in its mainstream stores for newer products.

In North Olmsted, an existing warehouse on Great Northern Boulevard is being remodeled as part of the conversion to the newer concept.

The company has also circulated plans among contractors and subcontractors to build a store at the Marketplace at Four Corners in Aurora, according to online service Construction Journal.

When the company opens the new discount stores, it will keep the existing flagship stores in nearby locations. It has been on the Marketplace since 2003 and in North Olmsted since 2004 as part of the Great Northern Mall.

Dick’s Tracks Go Going Gone! and other clearance concepts of the last three years. It had 15 going going gone! According to the company’s latest financial report, the stores will be open from April 29. There are also plans to convert ten of its existing warehouses, such as the one in North Olmsted, into the Going Going Gone! business. concept this year.

Burt Flickinger, executive director of New York City-based consulting firm Strategic Resource Group, said in a phone interview that the emphasis on the rebate concept makes a lot of sense given that consumers are preoccupied with inflation and there are signs that prices have been rising in recent years are likely to “get stuck” for some time.

The walking is gone! Strategy works on multiple levels, he said.

“This avoids customers being diverted to a competitor,” said Flickinger. “And it will be wise as we may enter a recession as blue collar customers remain cost conscious.”

The discount strategy allows Dick’s to recoup more of its costs than it could by destocking through a discounter, he said, and it gets significant savings by not having to unpack and repackage the merchandise when the prices go down.

The rebate policy also allows it to better compete with Walmart and Target as they increasingly target the growing esports category, he added.

Macy’s similar “back stage” concept of discounting has worked well in recent years. However, discount chain TJX Cos., which also owns TJ Maxx and Sierra stores, has the best model for driving prices down on products until they are sold.

On a recent visit to the North Olmsted warehouse, which remained open during the refurbishment, men’s $60 track shorts were selling for about $25 and the shoe department was particularly busy.

A Dick’s spokesman said the company did not have time to discuss the concept and referred to its most recent financial reports for more information.

According to a transcript on the company’s website, Dick’s management spoke directly about the strategy on its conference call on Tuesday, May 23.

Dick CFO Navdeep Gupta told an analyst that the company is Going Going Gone! The concept “enables us to achieve a much better recovery rate of clearance margin in this value chain business itself. In addition, you can replace the inventory that was in the Dick’s store with goods at regular prices, resulting in an increase in overall sales with the Dick’s store.”

Flickinger pointed out that with this strategy, Dick’s is taking up the floor space lost by other retailers.

The company operated 730 Dick’s Sporting Goods stores and 97 Golf Galaxy stores as of April 29.