Dick's Sporting Goods 2015 Annual Report Download - page 4

Driving Store Productivity
We also are making investments that enrich the shopping experience in our stores and drive store productivity.
In 2016, this will include elevating our Footwear business through our new full-service platform, which features an enhanced
assortment, industry-leading presentation and top-notch service, backed by a focused marketing effort. This is a key initiative for
DICK’S. Our research shows that footwear is the most important purchase a team athlete makes each season. In addition, our
customers tell us that it is the primary factor influencing the rest of their outfit. With this in mind, we are committed to advancing
our Footwear business and serving the needs of our customers.
We also are driving profitable growth and exclusivity through our private brands, which differentiate us from the competition and
command higher margins. We believe we have the opportunity to generate $1 billion in annual sales through our private brand
portfolio over the next several years, and we are working diligently toward this goal. Our diverse selection of private brands
includes trusted names like Field & Stream, CALIA, Top-Flite, MAXFLI, Umbro, Reebok apparel and adidas baseball, among
others. We plan to release our CALIA brand in every store during 2016, and we expect it to become our third largest women’s
athletic brand by year-end. We also have several new private brand projects in the pipeline, which we will begin to launch in
2017.
Winning Market Share
Finally, we are aggressively working to capture the displaced market share that is emerging within the sporting goods sector. We
believe we can win substantial share, both by increasing our presence in existing markets and by opening stores in select new
markets. We will support this effort by capitalizing on the valuable customer data generated by our ScoreCard loyalty program,
which we will use to create digital marketing campaigns tailored to the needs of our customers.
We also are committed to expanding our outdoor business through the co-location of our DICK'S and Field & Stream stores. We
believe our ability to combine these two powerful brands differentiates us from the competition and represents an effective tool
for capturing share in today’s highly fragmented market.
The DICK’S brand is one of our most valuable assets. We are capitalizing on this asset through a strategic promotional
campaign that reinforces our status as the nationwide leader in the sporting goods sector. One of our most exciting initiatives is
our partnership with the United States Olympic Committee and Team U.S.A. The Olympics are one of the few mass sporting
events that hold equal appeal for both men and women, and they provide us the platform to build brand equity on a grand scale.
We are supporting this partnership through our Contenders program, which provides nearly 200 Olympic hopefuls with flexible
work arrangements in DICK’S stores across the nation. This multi-faceted program not only helps these athletes to pursue their
Olympic dreams, it also enhances our customer service and brings our Olympic sponsorship to life in our stores.
Investing in Our Future
We move forward with confidence. The sporting goods market continues to offer strong opportunities for long-term growth. We
believe that by remaining disciplined and making prudent investments in the future, we will continue to set ourselves apart from
the competition and ultimately win.
We expect 2016 to be a pivotal year for our Company in which we will make strategic investments that strengthen our leadership
position and lay the groundwork to create meaningful momentum in the future. We are confident that these initiatives will enable
us to build substantial and sustainable long-term value. As always, our primary goal in these efforts is to reward you, our
shareholders, for your ongoing support.
Edward W. Stack
Chairman and Chief Executive Officer