Edward Stack is obviously one of those "when the going gets tough, the tough get going" sort of people. The chief executive of Dick's Sporting Goods can see that sales at the chain's stores have fallen off but he is convinced that now is the time for the retailer to grab market share away from the company's competitors.
"We see that we execute our business better than the competition," he told the Pittsburgh Tribune-Review. "A number of our competitors have indicated they've slowed their development programs. We continue to open stores."
Dick's, which grew to 434 stores last year after the acquisition of the Golf Galaxy and Chick's Sporting Goods chains, is looking to have 800 stores in operation within the next seven or eight years, according to Mr. Stack. This year, the company plans to open 44 Dick's stores and 10 Golf Galaxy units. The 15 Chick's stores in California are expected to be flying the Dick's banner by the end of next year.
Dick's comparable store sales for the first three months of the year dropped 3.8 percent versus the same period in 2007. The chain expects numbers for the second quarter to be off between four and seven percent compared to a nearly six-point increase last year.
Discussion Questions: Is it a smart move for retailers such as Dick's Sporting Goods to seek market share gains during periods where consumer purchases have slowed down? Does gaining market share require merchants to sacrifice margins and profits?