Dick's Expands Ship-from-Store Capabilities Chainwide to 520 Stores

Noting that shipping online orders from its 520 stores is "cheaper and quicker," Dick's Sporting Goods CEO Edward Stack says the retailer is doing its best to maximize ship-from-store as a fulfillment method.

"As we move to ship from store and we continue to get better at that, we look at it as having over 500 distribution centers across the country that can get product to customers quickly and inexpensively," said Stack during a recent conference call discussing Dick's Q1 financial results. While he did not provide any specific figures on the rise of ship-from-store, Stack called the increase "pretty dramatic."

Dick's other key omnichannel move is the addition of buy online/pick up in store functionality, which the retailer expects to have operational this year. E-commerce is a fast-growing and increasingly important part of Dick's business; it represented 3.7% of revenues in Q1 2012 but rose to 5.8% in Q1 2013, which ended May 4, 2013.

The retailer is not ignoring its brick-and-mortar stores by any means. Dick's will open a total of 40 new stores this year, including the introduction of a new Field & Stream outdoor concept store. "Our plans are to open two of these new stores this year, the first of which is scheduled to open in Pittsburgh in the third quarter," said COO Joseph Schmidt.

Dick's will also remodel 75 stores this year, including 56 by the end of Q2. The remodels include increasing the number of Nike and Under Armour store-within-store shops. From a current total of 178 Nike Fieldhouse shops and 111 Under Armour shops, the retailer projects to have 291 Nike and 240 Under Armour shops in its stores by the end of the year.

In another sign of the increasingly omnichannel nature of its business, Dick's now reports same-store sales for both brick-and-mortar locations and e-commerce business together. "It has become apparent that the traditional sales channels are overlapping with the digital space and that providing comp sales on a combined basis will be more meaningful," said CFO Timothy Kullman.

Sales for Q1 2013 increased 4.1% to $1.3 billion compared to the same period last year. Adjusted for a shifted calendar that added a 53rd week in 2012, same-store sales dropped 3.8% for the quarter.

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