Dick’s opens discount stores to clear unsold inventory
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Dick’s Sporting Goods this week announced the opening of new ‘deep discount’ stores to help clear inventory that has gone unsold while it was closed during the COVID-19 pandemic.
The stores fall into two different categories – Overtime outlets selling product at up to 75% off and temporary Warehouses offering even deeper discounts.
The first Overtime locations opened on Wednesday in Plainville, Connecticut, and Hagerstown, Maryland, with another due to open in Philadelphia on June 24. They will continue operating ‘for the foreseeable future’.
Warehouse locations opened on Monday in Avon, Indiana; St. Peters, Missouri; North Olmstead, Ohio; South Hills, Pennsylvania; and Brookfield, Wisconsin. The stores are planned as a ‘temporary pop-up style shopping experience’ over the next six months and will offer discounts of up to 90%.
The new stores come at a time when many retailers are left with a surplus of inventory after being forced to close during the virus.
“The outlets and warehouse stores remove the need for Dick’s Sporting Goods stores or the Dick’s website to aggressively discount product,” said Susquehanna Financial group analysts. “We expect these concepts to further strengthen [Dick’s] relationship with key brands and continue to grow.
“We expect [Dick’s] to continue to gain significant market share from smaller, under-capitalised players, many of whom have struggled during the pandemic.”
Dick’s Sporting Goods now has 11 outlet and clearance stores in nine states, having opened clearance centres in Utica, Michigan; Spartanburg, South Carolina; and Racine, Wisconsin; in 2019.
Dick’s reportedly has around 10% of the fishing retail market in the U.S..