Dick's Sporting Goods Market Analysis

2014 has been a year tagged with a surge of active and healthy lifestyles. Physical fitness has been gaining popularity rapidly among varying age groups in the United States. With this good news in mind the future looks bright for Dicks Sporting Goods. Dicks has been cashing in on athletic gear for the past decade and there are no apparent problems stopping them from doing so in the future. Dick’s Sporting goods is planning to take a large piece of customer’s discretionary income in the future. In 2014 the market for Sporting Goods in the United States was projected upwards of 63 billion dollars. This figure take into account licensed sports merchandise, athletic footwear and apparel, and exercise equipment. Last year Dick’s had over 5.8 billion in sales giving it roughly 9% of the US retail sporting goods industry. Dick’s sporting goods has plenty of room to grow. They are continuing to work …show more content…
The retail market is one of the most highly competitive markets in the world. Dick’s is constantly trying to one up specialty sporting goods retailers and mass merchants. In additional in a time of economic downturn retail expenses from consumers are one of the first to go. Looking out past the 5 year forecast, Dicks faces risk from supplier control, as the vendor side of the sporting goods industry growing more consolidated. Vendors such as Nike, Adidas, Under Armor would cause a significant drop in business if any of them were to discontinue selling to dicks or change allocation the firm receives. Dick’s prides itself on selling the most top of the line professionally endorsed equipment and essentially they are powerless to their vendors in this aspect. As vendors are developing their online capabilities this problem become increasingly concerning for management of Dick’s. Ultimately while growth is exciting to investors, it does not come without