Is Discounting a Growth Opportunity for Dick's Sporting Goods?
Dick's Sporting Goods (NYSE: DKS) is expected to be the last man standing in the sporting goods retail space because the investments it's made in its omnichannel capabilities allow it to be flexible to meet challenges, such as those it experienced during the coronavirus pandemic.
Yet the largest sporting goods store doesn't have much of a competitive advantage other than its size, and even then the gear and accessories it sells can be found at larger rivals like Walmart or Amazon.com.
Without much of a competitive moat, Dick's needs something new to differentiate it, and its recent decision to expand into the off-price market may be what it needs. The sporting goods retailer will soon have 11 new discount stores in operation over two separate concepts, and though they provide a level of risk, they may also help juice sales and margins.
Source Fool.com
