Dick's Sporting Goods 2014 Annual Report Download - page 34

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We seek to balance our expansion of Dick's Sporting Goods stores between new and existing markets. In our existing
markets, we add stores as necessary to cover appropriate trade areas. Clustering stores allows us to take advantage of
economies of scale in advertising, promotion, distribution and supervisory costs. We seek to locate stores within separate
trade areas within each metropolitan area and expand in geographically contiguous areas, in order to establish long-term
market penetration and build on our experience in the same or nearby regions. We believe that local knowledge is an
important part of success. In considering new regions, we locate our stores in areas we believe are underserved. In order to
achieve the same economies of scale we have in multi-store existing markets, we identify multiple locations in new
markets as well. In addition to larger metropolitan areas, we also target smaller population centers in which we locate
single stores, generally in shopping centers with a wide regional draw.
The following table summarizes store openings and closings for 2014 and 2013:
Fiscal 2014 Fiscal 2013
Dick's
Sporting
Goods Specialty Store Concepts (1) Total
Dick's
Sporting
Goods Specialty Store Concepts (1) Total
Beginning stores 558 84 642 518 83 601
New stores:
Single-level stores 42 9 51 40 4 44
Two-level stores 4 — 4 — — —
Total new stores 46 9 55 40 4 44
Ending stores 604 93 697 558 87 645
Closed stores 1 2 3 — 3 3
Ending stores 603 91 694 558 84 642
Remodeled stores 5 — 5 4 — 4
Relocated stores 5 2 7 1 1 2
(1) Includes the Company's Golf Galaxy, Field & Stream and True Runner stores.
Future openings will depend upon several factors, including but not limited to general economic conditions, consumer
confidence in the economy, unemployment trends, interest rates and inflation, the availability of retail store sites on
acceptable terms, real estate prices and the availability of adequate capital. Because our new store openings depend on
many factors, they are subject to risks and uncertainties as described below within Item 1A. "Risks Factors".
eCommerce:
Through our Dick's Sporting Goods and Golf Galaxy websites, we seek to provide our customers with in-depth product
knowledge and the ability to shop with us at any time. We continue to develop our online content and capabilities to
enhance the online experience and fully integrate our online business with our stores to provide our customers with an
omni-channel shopping experience. Currently, we have return-to-store capabilities for online orders and the ability to place
online orders in our stores if we are out of stock in the retail store. We also have the ability through our Dick’s Sporting
Goods website to ship orders placed online from our retail locations, which reduces delivery times for online orders and
improves inventory productivity, and we have recently added capability for our customers to buy merchandise online and
pick it up in store. In fiscal 2014, our eCommerce business accounted for approximately 9% of our total sales.
Information Systems
Our core merchandising, allocation and replenishment systems are from JDA Software Group, Inc. ("JDA"). The data generated
by these systems are consolidated into a comprehensive data warehouse application that was purpose-built to provide near real-
time performance information across a broad spectrum of critical metrics for our business. All functions of the business have
access to highly accurate and consistent information related to the various components of sales, inventory and margin from
department to SKU level.