Dick’s Sporting Goods to Shrink Public Lands Store Count
Dick’s Sporting Goods’ foray into the outdoor market is shrinking, at least for now, according to several brand executives who sell to the outdoor-focused Public Lands chain.
Dick’s has told those brands that it plans to close five of its eight Public Lands stores, and convert those former Public Lands stores into other banners, including potentially its experiential House of Sport concept, which has been a hit with shoppers since it launched in 2021.
Larger Public Lands stores, formerly Field and Streams that Dick’s converted to Public Lands locations and are approximately 50,000 square feet, will close. The company’s experiment with smaller Public Lands stores, such as the Woodbury, Minnesota location that opened in May, has gone better, according to sources. Brands have been told that those stores, which are approximately 25,000 to 30,000 square feet, will remain open as the company tests the viability of the smaller format.
Representatives of Dick’s did not respond to requests for more information about the Public Lands changes. It is unclear if Public Lands will maintain a separate buying team from Dick’s in categories such as apparel, or if buying teams will be merged. (Editor’s note: we will update this story if we hear back from Dick’s.)
Currently, Public Lands operates stores in Melville, New York; Framingham, Massachusetts; Columbus, Ohio; Charlottesville, Virginia; Kennesaw, Georgia; Cranberry Township, Pennsylvania; Woodbury, Minnesota; and Medford, Oregon.
The stores are beautifully merchandised, with an upscale feel and higher price points than typically found at Dick’s.
Ramping Up House of Sport – Quickly
If one follows Dick’s closely, as we do here at Shop Eat Surf, it became apparent that Public Lands has not been a big success. Dick’s launched the new retail concepts – Public Lands and House of Sport – in 2021, and the 100,000-square-foot House of Sport concept was an instant hit, while consumer response to Public Lands has been more tepid.
Dick’s announced in 2022 that it was already green lighting a much larger roll out of House of Sport while Public Lands was still in test mode. Dick’s operates 15 House of Sport stores, and the company plans to open five more locations this year.
“With House of Sport, we are redefining sports retail and creating very strong engagement with our athletes, our brand partners, and communities,” Dick’s CEO Lauren Hobart said during an earnings call in September. “It’s also driving significant benefits to our real estate partners. We continue to hear from mall operators that our House of Sport locations drive increased traffic, sales per square foot and occupancy rates for the malls where they operate. House of Sport is drawing unprecedented landlord interest and the opportunity to join many of the best shopping centers in the country.”
The company is also focused on expanding its next generation, 50,000 square foot Dick’s locations that it internally calls Field House, which is inspired by House of Sport and includes interactive experiences and elevated presentation and service, Hobart said.
“These (Field House) stores are performing exceptionally well,” she said. “During Q2, we opened four Field House locations and with 17 now opened, we look forward to opening nine more locations this year.”
How Public Lands performed, or plans for the outdoor chain, was not mentioned on the recent earnings call. The downsizing of Public Lands could be another challenge for outdoor industry brands at a time when growth is hard to find for many brands as retailers overall remain cautious with open-to-buy dollars.
Dick’s Outperforms Market – For Years
Overall, Dick’s has been a top performing retailer for several years, including its recent second quarter results, with net sales up 7.8% to $3.47 billion compared to the same quarter last year.
The company’s reported earnings per diluted share was $4.37, up 55% from last year, and Dick’s raised its full-year 2024 guidance for comparable sales growth to a range of 2.5% to 3.5%, up from 2% to 3%.