Dicks Sporting Goods is scoring big points with custom- ers by setting up stores within stores that each feature an extensive selection of goods from a particular brand. The Pennsylvania-based retailer was founded in 1948 as a bait and tackle shop. Today, the founders son is CEO, heading up a management team responsible for 558 large-scale Dicks Sporting Goods stores selling sports equipment, clothing, and shoes for team and individual use. Despite competition from other sporting-goods retailers, including Bass Pro Shops and REI, Dicks continues to grow beyond $6 billion in annual sales by putting brand-name merchandise at the core of its strategy for in-store, online, and mobile retailing. For example, inside some of the larger Dicks stores is a special shop where only Nike-brand products are displayed. Part of the Nike inventory is exclusive to Dicks, which adds to the attraction for customers who prefer that brand. Selected Dicks stores contain a dedicated Under Armour shop or a dedicated North Face shop, again featuring a mix of mer- chandise available nationwide and some items available only at Dicks. These stores-within-a store not only differentiate Dicks from its rivals, but they also generate higher sales and profits per square foot than other areas of the store. Not long ago, the retailer teamed up with the National Hockey League to test the sale of league- and team-branded merchandise at Dicks. The NHL operates three flagship specialty stores, and each of the 30 professional hockey teams also sells its own branded merchandise. However, the NHL decided it needed an experienced retail partner with a national presence to expand the NHL shop concept and reach more hockey fans. Now Dicks is working with the NHL to test dedicated shops within three Dicks stores. Averaging 400 square feet, each NHL store-within-a-store offers team merchandise geared to the interests and wallets of a wider range of fans. If the dedicated NHL shops do well, Dicks will open dozens more in the coming years. Dicks also operates 82 Golf Galaxy specialty stores, catering to golf enthusiasts who appreciate the vast selection of golf-related merchandise, including clothing, shoes, and new or used equipment. Customers can take lessons from golf professionals, test clubs in an indoor driving area and a putting green, and use the interactive golf-course simulator to play at some of the worlds best-known courses. The full-service retailer offers trade-ins, custom fitting, equipment repair, tee- time reservations, and travel arrangements for golf vacations. In addition, Dicks is opening a series of smaller specialty stores with narrow but deep assortments for specific target markets. For instance, it operates three True Runner spe- cialty stores stocked with footwear, apparel, and accessories for serious runners. These stores use special technology to analyze each runners arch and gait so salespeople can make personalized suggestions for appropriate shoes. To encourage runners to drop by, True Runner stores serve as a community hub for running information and provide lockers where cus- tomers can leave their belongings while running in the area. Dicks recently acquired the Field & Stream brand, which has been in existence for more than 140 years. Now the company has begun opening specialty stores under that name to sell equipment and accessories for fishing, camp- ing, and hunting. By 2017, the company expects to have at least 55 Field & Stream specialty stores, coast to coast. Field & Stream stores, like True Runner stores, are smaller than Dicks Sporting Goods andlike all of Dicks storesare staffed by employees who are knowledgeable and can help customers make informed choices. Recognizing the potential of e-commerce and growing customer interest in mobile access to retail sites, Dicks has upgraded its website retailing technology and streamlined the process of browsing and buying via smartphone. The IKEA Makes the Most of Its Marketing Channels The furniture and housewares retailer IKEA has a long his- tory of using multiple marketing channels to reach customers near and far. IKEAs founder, Ingvar Kamprad, was a teenage entrepreneur when he started a mail-order business selling postcards and pencils in Sweden more than 70 years ago. Within a few years, he had expanded into reselling locally-made furniture and, in 1951, he printed the first annual IKEA furniture catalog. Soon, he opened the first IKEA show- room to allow cus- tomers to see and try furniture before mak- ing a purchase. By 1955, the company was designing and manu- facturing many of its own products to meet idea is to give customer more buying options and achieve the retailers goal of ringing up $1 billion in online sales by 2017. Nonetheless, store retailing remains the firms main focus, because most customers like to see sports equipment in person, seek expert advice, and try products before making a purchase. With that in mind, Dicks has invested in a fourth distribution center to be able to receive, sort, and ship merchandise for up to 750 stores. Looking even further ahead, the retailers research indicates sufficient long-term demand and profit potential for more than 1,000 Dicks Sporting Goods stores nationwide.

1. How would you describe the store image of Dicks Sporting Goods?

2. What effect do you think the opening of NHL stores- within-stores will have on the retail positioning of Dicks Sporting Goods?

3. Would you recommend that Dicks Sporting Goods test direct selling through at-home consultants? Explain your answer?