Dick's Sporting Goods is Dominating the Pandemic Shopping Wars by Seizing on a New Wave of Customers
Business Insider | August 26, 2020
With the gyms closed and customers shift to working out at home, the pandemic is driving a surge in sales at Dicks' Sporting Goods. Shoppers are stocking up on fitness gear and apparel and engage more in outdoor activities such as biking and camping.
The company's overall sales rose 20.1% to $2.71 billion and same-store sales increased 20.7%, even with about 15% of its stores closed on average during the quarter. The results represent the company's highest-ever quarterly sales and earnings, according to Dick's.
The company likely benefited from demand-driven inventory shortages at other big-box retailers, such as Walmart, Target, and Amazon.
Dick's has captured a new subset of customers that may not have previously shopped at the retailer, according to Neil Saunders, managing director of GlobalData Retail. "In addition to the gym crowd pivoting to working out from home, our data also show that many traditionally less-active customers have engaged more in fitness over the past few months," Saunders wrote. "Some of this is because of an absence of other things to do and some is related to more people being conscious about their health and wellbeing as a result of the virus."
Dick's seized on this trend in part by rapidly rolling out curbside pickup for online orders. The company's online sales jumped 194%, with e-commerce accounting for 30% of total net sales — up from 12% in the prior year.