Dick's Sporting Goods 2013 Annual Report Download - page 5

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Our continuous dedication has made DICK’S the largest
and most profitable publicly held full-line sporting goods
retailer in the nation with a powerful omni-channel
platform that spans 558 DICK’S Sporting Goods stores and
a rapidly growing eCommerce business. And, just like our
company’s earliest customers—die-hard anglers who spent
the off-season sharpening hooks, organizing tackle boxes
and scouting promising locations—we are continuously
strategizing for the future.
Our forward-thinking approach is evident as we enter 2014:
We are leading our industry by maintaining a dominant
market position. We are growing our operations by pursuing
attractive expansion opportunities. We are focused on
continuous improvement in every area of our business. And
we are driven to deliver superior financial and operational
results, including growing our sales to $10 billion and
increasing our operating margin to 10.5 percent by the end
of 2017.
During 2013, we developed a targeted strategy to achieve
these goals, which centers on building our omni-channel
platform, enhancing the shopping experience we offer
to customers, implementing innovative marketing
campaigns and developing our new Field & Stream
specialty outdoor retail concept.
STAYING AHEAD OF THE CURVE
DICK’S has a long history of building our business through
innovation. Over the years, we have formed strategic
partnerships with leading vendors, launched exclusive
brands, tested specialty retail concepts and executed
distinctive marketing campaigns. These efforts have given
us exceptional insight into the needs of our customers,
while improving our value proposition and driving
consumer awareness of our brand. We also embraced
eCommerce early on, recognizing that it was a business we
DICK’S SPORTING GOODS // 2013 ANNUAL REPORT // 3
BUILDING A SUCCESSFUL
OMNI-CHANNEL NETWORK
• Opened 40 new DICK’S stores
• Began testing buy-online, pick-up in-store
• Lowered shipping costs by nearly 10% per unit
• Increased online conversion by over 30%
• Created dedicated eCommerce
commercial for holiday
• Launched new tablet optimized site
needed to develop. Since then, our eCommerce business
has gained significant traction, and today, it is a strong
growth vehicle that complements our store network.
Together, these two channels constitute a powerful
omni-channel platform that gives DICK’S a clear
competitive advantage.
Our omni-channel platform is central to our growth strategy,
and we are continuing to rely on our strength as an innovator
to shape it into a seamless distribution network that
delivers a unique, high-quality shopping experience to every
customer at every point of contact. This initiative includes
building and developing both our eCommerce business and
our store network, while finding new ways to capitalize on
the synergies between these two channels.
On the eCommerce side, we are enhancing the customer
experience by expanding our product assortment, creating
value-added content, offering free shipping for most items,
and adding new functions that make our site easier to use,
such as improved search capabilities for smartphones and
tablets. We are also continuing to roll out new capabilities
that link our eCommerce platform with our store network,
including ship-from-store, and buy-online, pick-up in-
store, which efficiently connect our in-store inventory with
online customer demand.
These measures have already helped us to capture a
meaningful share of the online sporting goods market, which
generates an estimated $6 billion in annual sales and is
growing rapidly1. From 2009-2012, the online sporting goods
market posted a compounded annual growth rate (CAGR) of
19 percent, while DICK’S eCommerce business generated a
CAGR of 41 percent. During this same period, we increased
our overall share of this market from 2.9 percent in 2009 to
4.9 percent in 20121. And while 2013 industry data is not yet
available, our strong growth accelerated in 2013, with our
eCommerce growing 65 percent to over $480 million.
ALL 558 STORES ENABLED FOR SHIP-FROM-STORE
1 Source: Internet Retailer 2013 edition. Market defined as Sporting Goods ($2.9 billion in 2012) and relevant Apparel / Accessories retailers
($3.1 billion in 2012) in the 2013 Internet Top 500.