Dick’s Sporting Goods Tests Experiential Retail

Sports-products chain Dick’s Sporting Goods is expanding the footprint of its newest concept store, the massive “House of Sport,” which mixes traditional retail with several experiences to test out products and build community.

The Big Play: Most retail brands are shrinking their stores — both in size and number — to deal with inflation, slower consumer spending, and a focus on ecommerce. But the company doubling down on House of Sport is a bet that people do want to shop in person… they just want the shopping trip to also be a fun experience.

Behind the Curtain: While Dick’s first House of Sport in Victor, NY, was double the size of one of its typical stores, executive chairman Ed Stack said, “Go bigger.”

• The company has since opened 21 House of Sport stores — which are between 120,000 and 140,000 square feet — and plans to open dozens more until they represent a quarter of the company’s retail footprint.
• Each store offers different amenities, but they typically include rock-climbing walls, golf simulators, track-and-field turfs, batting cages, and ice-skating rinks.
• The features allow customers to test products before purchasing, can be rented by local sports leagues, and are available for birthday parties.
• The large stores cost $15.5 million more to build than the normal-sized ones, but they also generate roughly $20 million in revenue during their first year.

Closing Thoughts: Dick’s is currently defying consumer-goods trends, just posting its largest-ever sales quarter. The company expects that to change this year because of… well, everything. But considering the buzzy upgrade to its stores, Dick’s may be drafting some long-term growth and tough-to-get customer loyalty.