Wednesday, March 23, 2011

Dicks's Sporting Goods Eyes Store In My Area

After years of being an investor in Dick's Sporting Goods (DKS) and not being able to shop there since they aren't located in Oklahoma, it appears they are finally looking at a location in Broken Arrow just down from my office. They've owned the Golf Galaxy store in Tulsa for a while now, but this will be the first Dick's store within several hundred miles.

According to the Tulsa World, BA approved a $900K tax rebate incentive for a store at the Shops at Broken Arrow site. The deal would give Dick's a $90K sales tax rebate for 10 years. Seems like quite the deal for a strong retailer like DKS.

From a competition stand point, this location is ideal with BA having a population of close to 100K with zero access to big league sporting goods store. Not to mention any stores in Tulsa like Academy and Sports Authority are very far away. And of course they aren't much competition anyway. The store would also be within a mile of the largest high school in the state.

Hopefully the store will get built though maybe it will be a sign that DKS is becoming a mature retailer. Entry into Oklahoma would make the 43rd state and I assume the other states are North Dakota, South Dakota, Idaho, and Wyoming leaving very little growth locations in new states.

DKS will remain a great retailer but the growth might slow soon. Something to ponder.


Disclosure: Long DKS in client and personal accounts. Please review the disclaimer page. 

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