Dick's Sporting Goods 2008 Annual Report Download - page 6

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We completed the consolidation of
G
olf
G
alaxy by closing the Minneapolis offi ce and
convertin
g
all of the operatin
g
and fi nancial systems. Golf Galaxy is now fully inte
g
rated
within our supply chain, and experienced Dick’s
S
porting
G
oods associates have been
buyin
g
and marketin
g
the Golf Galaxy product since November 2008. The Golf Galaxy
business was off 7.7% on a com
p
arable store sales basis for 2008, and, in the current
environment, we expect the gol
f
business will continue to be challenged as gol
f
is a highly
discretionary
p
urchase. We ex
p
ect to o
p
en only one new Golf Galaxy store in 2009 and may
not open any in
20
1
0
.
The conversion process of 12 Chick’s Sporting Goods stores located in Southern California
is proceeding on schedule. We expect to complete the conversion by the end o
f
the second
q
uarter of 2009, and we continue to be very excited about these stores as this ac
q
uisition
provided us with instant access to the important
S
outhern
C
alifornia area. Although this
area is amon
g
the hardest hit economically, we believe we have si
g
nifi cant business
opportunities in
C
alifornia.
We expect the tou
g
h economic conditions of 2008 to continue in 2009 and possibly into 2010.
We will, however, continue to concentrate on our primary customer group o
f
core athletes
and outdoor enthusiasts; work with vendors to
p
rovide more exclusive
p
roducts and better
value to our customers; bu
i
ld our pr
i
vate brand program; and emphas
i
ze d
i
sc
i
pl
i
ne and
execution in everythin
g
we do.
As the U.
S
.
O
pen provides the opportunity for the best golfers in the world to be identifi ed
as they perform in the tou
g
hest of conditions, we are confi dent these diffi cult times will
provide the opportunity for Dick’s
S
porting
G
oods to continue to be identifi ed as one of the
w
o
rl
d
’
s
bes
t r
e
t
a
il
e
r
s.
Edward W. Stack
C
h
a
irm
a
n
a
n
d
C
hi
e
f Ex
ecu
tiv
e
O
ffi
cer
ENDURANCE
DICK’S SPORTING GOODS, INC. 2008 ANNUAL REPORT4