February 23, 2023
Photo: Moosejaw
Dick’s Sporting Goods heads for the big outdoors with Moosejaw deal
Dick’s Sporting Goods is acquiring Moosejaw from Walmart. The sporting goods giant made the deal to advance its ambitions in the multibillion-dollar outdoor retail market.
According to The NPD Group, dollar sales in the outdoor specialty market grew seven percent to $7.9 billion in the U.S. for the year ending November 2022. The snow specialty market added $1.7 billion in revenues from August through November.
Moosejaw was founded in 1992 and acquired by Walmart in 2017. It operates an e-commerce site and 13 stores in Arkansas, Colorado, Illinois, Kansas, Michigan and Missouri.
The chain will join Public Lands, launched in 2021, as part of Dick’s outdoor retail portfolio. Moosejaw CEO Eoin Comerford will report to Todd Spaletto, president, Public Lands and senior vice president, Dick’s Sporting Goods, once the deal closes.
“We admire what Moosejaw has accomplished over the past 30 years as leaders in the outdoor industry and look forward to the opportunity to share insights and learn from one another,” said Mr. Spaletto in a press release announcing the deal. “We believe there’s potential to grow the Moosejaw business and provide compelling experiences and an expanded product assortment to its millions of loyal customers.”
“Like Moosejaw, Dick’s sees a huge opportunity to bring more people to the outdoors,” Mr. Comerford said in a statement to CNBC. “Together we will serve outdoor enthusiasts from beginners to experts across multiple channels and locations.”
Public Lands sells online and operates seven stores in Georgia, Massachusetts, New York, Ohio, Oregon Pennsylvania and Virginia.
Dick’s and Walmart expect to close the deal for Moosejaw next month.
Dick’s reported a 6.5 percent increase in same-store sales for the third quarter ending October 29. The jump in Dick’s comps followed a 12.8 percent gain in same-store sales for the same period in 2021. The retailer is expected to report its fourth-quarter results on March 7.
- Dick’s Sporting Goods to Acquire Moosejaw – Dick’s Sporting Goods
- Dick’s Sporting Goods to buy e-commerce outdoor retailer Moosejaw from Walmart – CNBC
- The NPD Group Announces Winners of US Outdoor Sports Retail Performance Awards – The NPD Group
- What will Walmart gain from its Moosejaw acquisition? – RetailWire
- Will its Public Lands concept store help Dick’s conquer the great outdoors? – RetailWire
- Dick’s Sporting Goods Reports Record Third Quarter Sales; Delivers 6.5% Increase in Comparable Store Sales and Raises Full Year Guidance – Dick’s Sporting Goods
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Ken Morris
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John Lietsch
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Discussion Questions
DISCUSSION QUESTIONS: How do you expect Dick’s to manage the Moosejaw business? Will Moosejaw benefit from an expanded product assortment?
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Moosejaw fits the Dick’s portfolio like a glove. The Moosejaw brand should benefit greatly by being part of Dick’s portfolio and I expect to see the brand nurtured and grown by a company that knows exactly what to do with it. This appears to be a good strategic acquisition by Dick’s.
This is a good move by Dick’s as it strengthens their hand in the outdoor market where they currently do reasonably but under index compared to other sports and activities. It also complements the push to expand Public Lands, which is a fantastic concept but remains very small in the scheme of things. It will be interesting to see how the two brands work together or if they converge. Aside from Dick’s, the sale by Walmart represents another of their acquired brands that they have failed to develop well — although I am sure they took some learnings from their time running it.
Moosejaw is a logical brand extension for Dick’s Sporting Goods as it expands into outdoor adventure equipment and apparel. It is a much better fit with Dick’s and Public Lands than it was with Walmart. It seems like a smart acquisition for Dick’s.
These two are complementary businesses. Moosejaw has a good name in outdoor sporting activities and Dick’s has an equally respected name in the “everything else” sporting activities. Each company is likely to benefit from an association with the other.
As an outdoors enthusiast, I hope Dick’s manages it by allowing Moosejaw to retain its specialty — a rebel-like orientation with a high variety of quality, outdoor gear at various price points. I haven’t been to a Dick’s sporting goods store in years and if Dick’s converts Moosejaw into “Dick’s,” I believe it will lose some of its appeal. Plus Dick’s is joining a competitive market with the likes of REI and Backcountry, which have cult-like followings, and facing the ever evolving, direct-to-consumer threat. It’s a much better fit than Walmart but one that’s easy to fumble.
Lots of synergy here and I expect this deal to trend positive for Dick’s in the long run. There is so much more opportunity with Dick’s consumer target vs. Walmart’s, and timing couldn’t be better as consumers have regained some of their adventurous mojo after being locked down for a few years.
I think is a homerun for Dick’s and Moosejaw. The two brands a very complimentary. I expect that Dick’s will provide Moosejaw with more resources to expand their growth, and Dick’s will have a new outdoor brand for their stores. This is a win/win.
This is a smart move by Dick’s. Moving into a space that is adjacent to what they do but not cannibalistic to their core business. I would expect the Moosejaw brand to be absorbed by Public Lands. The Moosejaw website just looks like a generic discounter that specializes in jackets and outdoor-related items. Public Lands does a much better job at attempting to look like L.L.Bean and, together with Moosejaw, this will bring the number of locations to twenty.
L.L.Bean has mined this space successfully for decades and the pandemic has fueled customers’ urge to “Be an Outsider,” as their tagline says. But since Bean started in 1912, every outdoor brand starts from a position of playing catch-up. Moosejaw and/or Public Lands will be playing the same game. Outdoors, of course.
Moosejaw seemed like an awkward bolt-on at Walmart. But it seems like a perfect fit for Dick’s and Public Lands. So much so that one wonders if Dick’s really needs both new brands, or if there is a possibility that maybe they will merge into one brand someday. Which one wins?
Walmart has somewhat quietly divested itself of several (Marc) Lore-era acquisitions. Moosejaw is a great acquisition for Dick’s, as it is both a brand and a brand portfolio. Dick’s stores are flagship locations for many brands and Moosejaw established its following online. Dick’s won’t run out of options for growing Moosejaw and it is a perfect fit for Dick’s.
The Moosejaw deal is the perfect fit for Dick’s and will allow the brand to scale quickly. From leveraging insights to infrastructure, both brands will be able to get closer to their outdoor customers and drive smarter merchandising decisions across all regions. It’s the perfect match.
“According to The NPD Group, dollar sales in the outdoor specialty market grew seven percent to $7.9 billion in the U.S. for the year ending November 2022.” In a year of 7 percent inflation, that is no growth. The same can be said for Dick’s reporting a 6.5 percent increase in same-store sales.
Walmart was at an inflection point with Moosejaw and decided that investment in alternative projects was a better fit. In terms of fit, Dick’s is perfect. Dick’s needs to bring in new customers to continue to expand. In one swoop, Dick’s doubles their outdoor presence. The acquisition is likely less expensive than greenfield expansion.
A perfect strategic move.
With Moosejaw under its banner, Dick’s has a huge potential to grow in outdoor category and turn outdoor lovers into its loyal customers. During COVID pandemic, people rushed to the outdoors for hiking, boating, biking and other activities and they still love doing so. There is huge opportunity in the market overall, which isn’t crowded and is estimated to be worth about $40 billion.
Dick’s can leverage Moosejaw’s e-commerce platform, loyal customer base, strong capable vendors, trained workforce and brick-and-mortal locations. Moosejaw could help Dick’s enhance its omni-channel strategy and help acquire new group of outdoor enthusiasts.
This acquisition will be a win-win, provided Dick’s management thoroughly understand the Moosejaw’s business model, amplify what lead to Moosejaw’s growth and do not dilute the brand. There is a lesson to be learnt from Adidas’s acquisition of Reebok and then letting Reebok loose after 15 years.
I would think there are two options: leave it alone — and presumably grow it — or merge the operations with Public Lands (I’m not intimate with either of the names, but my assumption is the two are similar). There doesn’t seem to be much geographic concentration with either store, so some strategy like MJ in the East and PL in the West doesn’t immediately suggest itself, but I see no need to rush a decision (and far better to take your time than make some blunder that can’t be undone).
I wish them well.
We’ll see. Walmart deemed Moosejaw expendable. Or it was an offer too good to refuse? Is Dick’s prepared to absorb a “challenger brand” which Moosejaw was before WMT acquired it? Will the merchants welcome the merchants? Will the operators welcome the operators?
Gaylans, which Dicks bought, had a much larger “sportsman” foot print in those stores. Dick’s was a “team sports” brand. The past becomes the present.
We’ll see.
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Moosejaw fits the Dick’s portfolio like a glove. The Moosejaw brand should benefit greatly by being part of Dick’s portfolio and I expect to see the brand nurtured and grown by a company that knows exactly what to do with it. This appears to be a good strategic acquisition by Dick’s.
This is a good move by Dick’s as it strengthens their hand in the outdoor market where they currently do reasonably but under index compared to other sports and activities. It also complements the push to expand Public Lands, which is a fantastic concept but remains very small in the scheme of things. It will be interesting to see how the two brands work together or if they converge. Aside from Dick’s, the sale by Walmart represents another of their acquired brands that they have failed to develop well — although I am sure they took some learnings from their time running it.
Moosejaw is a logical brand extension for Dick’s Sporting Goods as it expands into outdoor adventure equipment and apparel. It is a much better fit with Dick’s and Public Lands than it was with Walmart. It seems like a smart acquisition for Dick’s.
These two are complementary businesses. Moosejaw has a good name in outdoor sporting activities and Dick’s has an equally respected name in the “everything else” sporting activities. Each company is likely to benefit from an association with the other.
As an outdoors enthusiast, I hope Dick’s manages it by allowing Moosejaw to retain its specialty — a rebel-like orientation with a high variety of quality, outdoor gear at various price points. I haven’t been to a Dick’s sporting goods store in years and if Dick’s converts Moosejaw into “Dick’s,” I believe it will lose some of its appeal. Plus Dick’s is joining a competitive market with the likes of REI and Backcountry, which have cult-like followings, and facing the ever evolving, direct-to-consumer threat. It’s a much better fit than Walmart but one that’s easy to fumble.
Lots of synergy here and I expect this deal to trend positive for Dick’s in the long run. There is so much more opportunity with Dick’s consumer target vs. Walmart’s, and timing couldn’t be better as consumers have regained some of their adventurous mojo after being locked down for a few years.
I think is a homerun for Dick’s and Moosejaw. The two brands a very complimentary. I expect that Dick’s will provide Moosejaw with more resources to expand their growth, and Dick’s will have a new outdoor brand for their stores. This is a win/win.
This is a smart move by Dick’s. Moving into a space that is adjacent to what they do but not cannibalistic to their core business. I would expect the Moosejaw brand to be absorbed by Public Lands. The Moosejaw website just looks like a generic discounter that specializes in jackets and outdoor-related items. Public Lands does a much better job at attempting to look like L.L.Bean and, together with Moosejaw, this will bring the number of locations to twenty.
L.L.Bean has mined this space successfully for decades and the pandemic has fueled customers’ urge to “Be an Outsider,” as their tagline says. But since Bean started in 1912, every outdoor brand starts from a position of playing catch-up. Moosejaw and/or Public Lands will be playing the same game. Outdoors, of course.
Moosejaw seemed like an awkward bolt-on at Walmart. But it seems like a perfect fit for Dick’s and Public Lands. So much so that one wonders if Dick’s really needs both new brands, or if there is a possibility that maybe they will merge into one brand someday. Which one wins?
Walmart has somewhat quietly divested itself of several (Marc) Lore-era acquisitions. Moosejaw is a great acquisition for Dick’s, as it is both a brand and a brand portfolio. Dick’s stores are flagship locations for many brands and Moosejaw established its following online. Dick’s won’t run out of options for growing Moosejaw and it is a perfect fit for Dick’s.
The Moosejaw deal is the perfect fit for Dick’s and will allow the brand to scale quickly. From leveraging insights to infrastructure, both brands will be able to get closer to their outdoor customers and drive smarter merchandising decisions across all regions. It’s the perfect match.
“According to The NPD Group, dollar sales in the outdoor specialty market grew seven percent to $7.9 billion in the U.S. for the year ending November 2022.” In a year of 7 percent inflation, that is no growth. The same can be said for Dick’s reporting a 6.5 percent increase in same-store sales.
Walmart was at an inflection point with Moosejaw and decided that investment in alternative projects was a better fit. In terms of fit, Dick’s is perfect. Dick’s needs to bring in new customers to continue to expand. In one swoop, Dick’s doubles their outdoor presence. The acquisition is likely less expensive than greenfield expansion.
A perfect strategic move.
With Moosejaw under its banner, Dick’s has a huge potential to grow in outdoor category and turn outdoor lovers into its loyal customers. During COVID pandemic, people rushed to the outdoors for hiking, boating, biking and other activities and they still love doing so. There is huge opportunity in the market overall, which isn’t crowded and is estimated to be worth about $40 billion.
Dick’s can leverage Moosejaw’s e-commerce platform, loyal customer base, strong capable vendors, trained workforce and brick-and-mortal locations. Moosejaw could help Dick’s enhance its omni-channel strategy and help acquire new group of outdoor enthusiasts.
This acquisition will be a win-win, provided Dick’s management thoroughly understand the Moosejaw’s business model, amplify what lead to Moosejaw’s growth and do not dilute the brand. There is a lesson to be learnt from Adidas’s acquisition of Reebok and then letting Reebok loose after 15 years.
I would think there are two options: leave it alone — and presumably grow it — or merge the operations with Public Lands (I’m not intimate with either of the names, but my assumption is the two are similar). There doesn’t seem to be much geographic concentration with either store, so some strategy like MJ in the East and PL in the West doesn’t immediately suggest itself, but I see no need to rush a decision (and far better to take your time than make some blunder that can’t be undone).
I wish them well.
We’ll see. Walmart deemed Moosejaw expendable. Or it was an offer too good to refuse? Is Dick’s prepared to absorb a “challenger brand” which Moosejaw was before WMT acquired it? Will the merchants welcome the merchants? Will the operators welcome the operators?
Gaylans, which Dicks bought, had a much larger “sportsman” foot print in those stores. Dick’s was a “team sports” brand. The past becomes the present.
We’ll see.