Dick's Sporting Goods 2015 Annual Report Download - page 12

eCommerce:
Through our 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 websites to ship orders placed online from our retail locations,
which reduces delivery times for online orders and improves inventory productivity. We also have capability for our
customers to buy merchandise online and pick it up in store. In fiscal 2015, our eCommerce business accounted for
approximately 10% of our total net sales.
Purchasing and Distribution
We purchase merchandise from approximately 1,600 vendors. During fiscal 2015, Nike and Under Armour, our largest vendors,
represented approximately 20% and 12%, respectively, of our merchandise purchases. No other vendor represented 10% or
more of our fiscal 2015 merchandise purchases. We do not have long-term purchase contracts with any of our vendors and all
of our purchases from vendors are made on a short-term purchase order basis.
We operate four regional distribution centers for supplying stores with merchandise. Vendors directly ship floor ready
merchandise to our distribution centers, where it is processed and allocated directly to our stores or to temporary storage at our
distribution centers. Our distribution centers are responsible for consolidating damaged or defective merchandise from our
stores that is being returned to vendors. We have contracted with common carriers to deliver merchandise from all of our
distribution centers to our stores. During fiscal 2015, our stores received approximately 95% of merchandise through our
distribution network with the remaining merchandise shipped directly to the stores from our vendors. We believe this flow of
merchandise facilitates prompt and efficient distribution to our stores in order to enhance in-stocks, minimize freight costs and
improve our inventory turns.
Competition
The market for sporting goods retailers is highly fragmented and intensely competitive. We compete with many retailing
formats, including large format sporting goods stores, traditional sporting goods stores, specialty and vendor stores, mass
merchants and department stores, and internet and catalog-based retailers. We seek to attract customers by offering a wide
range of products and broad selection and distinctive marketing in stores that provide a unique shopping environment and
superior service through an omni-channel experience.
Employees
As of January€30, 2016, we employed approximately 13,100 full-time and 24,100 part-time associates. Due to the seasonal
nature of our business, total employment figures fluctuate throughout the year and typically peak during the fourth quarter.
None of our associates are covered by a collective bargaining agreement. We believe that our relations with our associates are
good.
Proprietary Rights
The Company has a number of registered service marks and trademarks with the United States Patent and Trademark Office,
including various versions of the following: "Acuity", "CALIA", "DBX", "Dick's", "Dick's Sporting Goods", "Field€& Stream",
"Fitness Gear", "Golf Galaxy", "Lady Hagen", "MAXFLI", "Nishiki", "Primed", "Quest", "ScoreCard", "ScoreCard Rewards",
"Top-Flite" and "Walter Hagen". The Company also has a number of registered domain names, including
"dickssportinggoods.com", "DICKS.com", "golfgalaxy.com", "fieldandstreamshop.com" and "caliastudio.com". Our service
marks, trademarks and other intellectual property are subject to risks and uncertainties that are discussed within Item€1A. "Risk
Factors". We have entered into licensing agreements for names that we do not own, which provide for exclusive rights to use
names such as "adidas" (baseball only), "Slazenger" (golf and racquets), "Louisville Slugger" (hosiery only),
"Reebok" (performance apparel) and "Umbro" (performance soccer equipment, footwear and apparel) for specified product
categories and, in some cases, specified channels. These licenses contemplate long-term business relationships, with substantial
initial terms and the opportunity for multi-year extensions. These licenses contain customary termination provisions at the
option of the licensor including, in some cases, termination upon our failure to purchase or sell a minimum volume of products
and may include early termination fees. Our licenses are also subject to risks and uncertainties common to licensing
arrangements that are described within Item€1A. "Risk Factors".
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