Dick's Sporting Goods 2006 Annual Report Download - page 6

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DICK’S SPORTING GOODS, INC. 2006 ANNUAL REPORT
4
Building Our Brand
Athletes who stand out as leaders typically possess unique skills
and abilities – much like the unique shopping experience that
Dick’s offers to our customers. The cornerstone of this is our
store-within-a-store concept, through which we combine
several sports specialty stores in each of our locations. Our
customers appreciate the fact that they can get the access to
authentic merchandise, knowledgeable sales assistance and
value-added services typically found only in a specialty store,
in combination with the selection, convenience and competitive-
ness of a leading full-line sporting goods store.
Our store-within-a-store concept enables us to showcase exciting
new products from the industry’s leading brands. We leverage
these offerings by staging special in-store promotions and
events, as well as by being among the first to market the latest
new products. In 2006, we helped launch a number of defining
products, including the Nike + Apple iPod®Sport Kit and Under
Armour’s line of football cleats. We also worked with several of
our vendors to develop high-performance, branded products
that are available exclusively at Dick’s.
Our private-label brands represent an important growth vehicle
and a valuable differentiator for Dick’s. We offer exclusive
brandsthat present our customers with an appealing combination
of quality and value while generating higher margins.In 2006, we
continued to enhance and expand the merchandise assortment
we offer under these brands, helping them account for
14.1 percent of our total sales.
We highlight our assortment and heighten awareness of our
brand through marketing initiatives that target athletes and
outdoor enthusiasts. These initiatives include a Sunday circular
program supported by direct mailings, interactive in-store events
and sponsorship of community sports activities. We also work
to build our national presence through our Every Season Starts
at Dick’s advertising campaign on ESPN and The Golf Channel,
as well as through our e-commerce site, which we redesigned
in 2006 to provide an improved customer experience.
Capitalizing on Visible Growth Opportunities
We move into 2007 excited about the future and energized at
the many promising growth opportunities before us. As we work
to leverage our momentum so that we can capitalize on
these opportunities,I would like to thank you — our customers,
shareholders, vendors and associates — for your continued
support. We are focused on rewarding your commitment to us
and reinforcing Dick’s Sporting Goods as the nation’s leading
destination for sporting goods.
Edward W. Stack
Chairman and Chief Executive Officer
We move into 2007 excited about the future and energized
at the many promising growth opportunitiesbefore us.