Sportsman’s Warehouse buys eight Field & Stream stores
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Sportsman’s Warehouse Holdings says it expects to pay Dick’s Sporting Goods $28 million for eight Field & Stream stores later this month.
Dick’s is known to have been evaluating the future of its Field & Stream operation, comprising 35 stores, after falling sales had been attributed in part to the retailer’s decision to pull back on gun sales.
Sportsman’s Jon Barker, CEO of the Utah sporting goods chain, describes the move as an ‘opportunistic expansion’ of its current 95-store base. “Each of these stores operates in strong markets with well-established customer bases,” he said.
The outlets involved in the deal are located in Washington, Altoona and Camp Hill (Pennsylvania), Horseheads and Rochester (New York), Greensboro and Asheville (North Carolina) and Troy (Michigan).
The acquisition appears to fit with the strategies of both companies. Dick’s has been moving away from the challenging and low margin hunting business since it stopped selling sporting rifles at Field & Stream stores after the Parkland, Florida high school massacre.
It has also removed hunting products from a reported 125 Dick’s stores. However, hunting and firearms constitute approaching 50% of revenue at Sportsman’s Warehouse and the company has said it wants to increase its share of the firearms market. Dick’s, a Fortune 500 chain with around 850 stores, is reputed to have around 10% of the retail fishing market in the US.