Dick's Sporting Goods 2010 Annual Report Download - page 26

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store has the following in-store specialty shops: (i) the Golf Pro Shop, which carries a full range of products featuring major golf
suppliers such as TaylorMade, Callaway, Titleist, Cobra, FootJoy and Nike Golf as well as our exclusive brands, Walter Hagen,
Maxfli and Slazenger. The Golf Pro Shop features a putting green, golf simulators and launch monitors as well as video monitors
featuring golf tournaments and instruction on the Golf Channel or other sources; (ii) the Footwear Center, featuring hardwood
floors, a track for testing athletic shoes and a bank of video monitors playing sporting events; (iii) the Fitness Center, providing an
extensive selection of equipment for today’s most popular fitness activities, including a dedicated cycle shop designed to sell and
service bikes, complete with a mechanics’ work area and equipment on the sales floor; (iv) the Lodge for the hunting and fishing
outdoorsman, designed to have the look of an authentic bait and tackle shop; and (v) Team Sports, a seasonal sports area
displaying sports equipment and athletic apparel associated with specific seasonal sports, such as football and baseball. Our
stores provide interactive opportunities by allowing customers to test golf clubs in our indoor driving range, shoot bows in our
archery range, or run on our footwear track.
Our Golf Galaxy stores are designed to deliver our “Everything for the Game” strategy and create an exciting and interactive
shopping environment that highlights our extensive product assortments and value-added services. Interactive areas, such as an
artificial bent grass putting green and golf simulators, add to the entertainment value of the shopping experience. Our store
design and equipment displays encourage customers to test our products before making a purchase decision. Our highly visible
service areas reinforce the expertise available from our staff.
Exclusive Brand Offerings. Our exclusive brands and styles offer exceptional value and quality to our customers at each price point
and obtain higher gross margins than we obtain on sales of comparable products. Our team designs and develops these brands to
offer our customers differentiated assortments from our competitors. We have invested in a development and procurement staff
that continually sources products targeted specifically to the needs of a Dick’s Sporting Goods and Golf Galaxy consumer. We offer
products on an exclusive basis under various brands such as Maxfli, Field and Stream, Slazenger, Reebok, adidas baseball,
Umbro, Walter Hagen, Fitness Gear, DBX, Tailgate Gear, Quest and Nishiki.
Merchandising
We offer a full range of sporting goods and active apparel at each price point in order to appeal to the beginner, intermediate and
enthusiast sports consumer. The merchandise we carry includes one or more of the leading manufacturers in each category. Our
objective is not only to carry leading brands, but a full range of products within each brand, including the premium items for the
sports enthusiast. As beginners and intermediates move to higher levels in their sports, we expect to be prepared to meet their
needs.
We believe that the range of the merchandise we offer, particularly for the enthusiast sports consumer, distinguishes us from
other large format sporting goods stores. We also believe that the range of merchandise we offer allows us to compete effectively
against all of our competitors, from traditional independent sporting goods stores and specialty shops to other large format
sporting goods stores and mass merchant discount retailers.
The following table sets forth the approximate percentage of sales attributable to the apparel, footwear and hardlines categories
for the periods presented:
Merchandise Category 2010 2009 2008
Fiscal Year
Apparel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28% 28% 30%
Footwear . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18% 16% 16%
Hardlines (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54% 56% 54%
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% 100% 100%
(1) Includes items such as sporting goods equipment, fitness equipment, hunting and fishing gear and golf equipment.
Apparel
This category consists of athletic apparel, outerwear and sportswear designed for a broad range of activities and performance
levels as well as apparel designed and fabricated for specific sports in men’s, women’s and children’s assortments. Technical and
performance specific apparel includes offerings for sports such as golf, tennis, running, fitness, soccer, baseball, football, hockey,
swimming, cycling and licensed products. Basic sportswear includes T-shirts, shorts, sweat suits and warm-up suits.
6 Dick’s Sporting Goods, Inc. ¬2010 Annual Report