Dick’s Closing 11 Moosejaw Stores Months After Acquisition
Dick’s Sporting Goods Inc. will close 11 Moosejaw retail stores as part of an internal realignment.
That will leave just three Moosejaw stores in Birmingham, Mich., Salt Lake City, Utah, and Bentonville, Ark. open for business. Seven stores in Michigan, and one each in Olathe, Kan., Chicago, Boulder, Colo. and Kansas City, Mo. will close, according to media reports.
In a statement, Dick’s said it will assemble one team to run its outdoor-focused brands.
“After careful review of our outdoor specialty business, we have decided to form one team that will support the operations of Public Lands and Moosejaw,” it said, noting that the new team will be based at Public Lands’ Pittsburgh headquarters. “This move supports our business optimization efforts and will allow us to operate more efficiently, quickly leverage best practices across our outdoor business and drive our long-term success.”
A seller of more than 400 brands, Dick’s acquired Moosejaw from Walmart in February after the mega mass merchant bought it for $51 million in 2017.
“We admire what Moosejaw has accomplished over the past 30 years as leaders in the outdoor industry and look forward to the opportunity to share insights and learn from one another,” Todd Spaletto, Public Lands’ president and Dick’s Sporting Goods’ senior vice president, said at the time of the acquisition. “We believe there’s potential to grow the Moosejaw business and provide compelling experiences and an expanded product assortment to its millions of loyal customers.”
The growing $7.9 billion outdoor specialty market is part of broader $40 billion outdoor industry, Dick’s CFO Navdeep Gupta told investors in May.
While similar in some ways, Moosejaw and Public Lands have their differences, too.
Moosejaw is big in e-commerce, but runs small stores averaging 4,000 square feet. Public Lands is still testing the right retail format, according to Gupta, who said the concept is focused on a “long term” growth opportunity. While Public Lands hase a website, it only has seven stores averaging 50,000 square feet. The first opened in 2021, in the Pittsburgh area as a rebrand of a former Dick’s Field & Stream location. The store, featuring a 30-foot rock climbing wall, houses a specialty shop for various outdoor activities, plus an in-store gear repair and rental department.
But Dick’s reported a rare miss in second quarter earnings, with net income down 23 percent for the three months ended July 29 to $244 million, on a 4 percent uptick in revenue to $3.22 billion. The company attributed the disappointing results to shrink, and lowered its outlook for the year because it sees crime-fueled shrink only getting worse.
Dick’s CEO Lauren Hobart told investors that organized retail crime and theft in general were “meaningful to both our Q2 results and our go-forward expectations” for the rest of the year. The outdoor retailer also took “decisive action on excess product,” she said, which suggests that the sector could be seeing a slowdown.
The retailer seems to be focused on the big-box community-oriented specialty House of Sport stores. These 100,000 square foot stores feature experiential elements like climbing walls, golf bays with simulators, multi-sport cages, fields and ice rinks. Dick’s plans to open more of these going forward, with 10 slate for 2024. It wants to run as many as 100 House of Sport stores by 2027.