{"id":439172,"date":"2021-06-08T05:31:23","date_gmt":"2021-06-08T12:31:23","guid":{"rendered":"https:\/\/www.esri.com\/about\/newsroom\/?post_type=wherenext&#038;p=439172"},"modified":"2025-01-22T09:12:57","modified_gmt":"2025-01-22T17:12:57","slug":"dicks-sporting-goods-strengthens-omnichannel-through-brick-and-mortar-planning","status":"publish","type":"wherenext","link":"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/dicks-sporting-goods-strengthens-omnichannel-through-brick-and-mortar-planning","title":{"rendered":"DICK\u2019s Sporting Goods Strengthens Omnichannel through Brick and Mortar Planning"},"author":501,"featured_media":0,"parent":0,"menu_order":0,"template":"","format":"standard","meta":{"_acf_changed":false,"sync_status":"","episode_type":"","audio_file":"","podmotor_file_id":"","podmotor_episode_id":"","castos_file_data":"","cover_image":"","cover_image_id":"","duration":"","filesize":"","filesize_raw":"","date_recorded":"","explicit":"","block":"","itunes_episode_number":"","itunes_title":"","itunes_season_number":"","itunes_episode_type":"","_links_to":"","_links_to_target":""},"categories":[381312,369812,365242],"tags":[471831,474852,471991,384832,238001],"department":[476812,476792,476782],"wherenext-category":[],"industry":[],"class_list":["post-439172","wherenext","type-wherenext","status-publish","format-standard","hentry","category-cxo-priorities","category-market-development","category-retail","tag-e-commerce","tag-halo-forecasting","tag-market-analysis","tag-omnichannel","tag-site-selection","department-business-growth","department-cxo-priorities","department-new-analyst"],"acf":{"short_description":"For data-savvy DICK\u2019S Sporting Goods, an optimized network of brick-and-mortar stores remains critically important to customer engagement.","pdf":{"host_remotely":false,"file":"","file_url":""},"flexible_content":[{"acf_fc_layout":"content","content":"A cursory glance at recent business headlines would seem to tell a straightforward if grim tale for traditional stores: e-commerce is ascendant, while brick-and-mortar struggles to remain viable."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Left","content":"<strong>Article snapshot:<\/strong> The largest sporting goods retailer in the US is using a creative team of analysts and GIS technology to:\r\n<ul>\r\n \t<li>Guide the expansion of its market-leading store network<\/li>\r\n \t<li>Gain a deeper understanding of the relationship between online and brick-and-mortar sales and how to expand its personalization strategy<\/li>\r\n \t<li>Inform its foray into groundbreaking forms of retail<\/li>\r\n<\/ul>","snippet":""},{"acf_fc_layout":"content","content":"An <a href=\"https:\/\/www.cnbc.com\/2021\/04\/05\/store-closures-ubs-predicts-80000-stores-will-go-dark-by-2026.html\">April UBS report<\/a> estimates that 80,000 US retail locations\u2014or close to 10 percent of total stores in the country\u2014will shutter by 2026, while e-commerce sales will rise to 27 percent of total retail purchases.\r\n\r\nBut those numbers don\u2019t tell the whole story. Data-savvy retail companies are blending the two modes of shopping into an <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/nexttech-omnichannel-crm-and-gis\/\">omnichannel strategy<\/a> that can spark business advantage. Rather than framing online and physical sales as a zero-sum contest, leading executives recognize that stores and e-commerce can actually boost each other\u2014a phenomenon known as <a href=\"https:\/\/www.esri.com\/about\/newsroom\/publications\/wherenext\/halo-forecasting-with-ai\/\">the halo effect.<\/a>\r\n\r\nThe largest sporting goods retailer in the US has taken this approach and emerged from the coronavirus pandemic stronger than ever. Bucking what some might think of as conventional wisdom in the era of one-click shopping, DICK\u2019S Sporting Goods is adding to its network of brick-and-mortar stores to complement a growing online presence. Whether customers are browsing aisles of basketballs, lacrosse sticks, and running shoes, or swinging by for curbside pick-up of online orders, DICK\u2019S strategically placed locations act as important customer engagement points in a thriving omnichannel network.\r\n<h3><strong>DICK\u2019S Sporting Goods Expands a Thriving Retail Ecosystem<\/strong><\/h3>"},{"acf_fc_layout":"form","form_type":"aside","form_position":"Right","form_title":"THE ESRI BRIEF\u2014Get in the Know","form_desc":"A biweekly email for senior executives and business leaders featuring thought-provoking articles on location intelligence and critical technology trends.","form_button_label":"Sign up now","form_content":"https:\/\/go.pardot.com\/l\/82202\/2017-10-12\/jw1bmb","form_tag":"low-commitment-form\/sign-up-form"},{"acf_fc_layout":"content","content":"The company\u2019s real estate division supports that network by relying on a geographic information system (GIS) to guide <a href=\"https:\/\/www.esri.com\/en-us\/industries\/market-development\">market development<\/a> and retail optimization. Using the business insight generated by GIS\u2014known as <a href=\"https:\/\/www.esri.com\/en-us\/location-intelligence\">location intelligence<\/a>\u2014the company\u2019s real estate directors forecast customer demand in new trade areas and analyze the concentration and spacing of stores in developed markets.\r\n\r\nFor instance, the team cross-references census-based data on sporting goods expenditures against its own <a href=\"https:\/\/www.esri.com\/en-us\/industries\/blog\/articles\/unlocking-insights-from-your-crm-with-gis-a-strategy-for-growth\/\">loyalty data<\/a> on online sales to spot areas of high customer demand, signaling strong potential for a DICK\u2019S store.\r\n\r\nDICK\u2019S analysts also used location intelligence to plan the geographic footprint of an unprecedented venture: an experiential concept store called House of Sport, opened this March in Victor, New York, with another to open in Knoxville, Tennessee in June. The sprawling New York location is the company\u2019s <a href=\"https:\/\/www.cnbc.com\/2021\/04\/09\/dicks-sporting-goods-new-store-has-a-driving-range-and-outdoor-track.html\">biggest store ever<\/a> at 100,000 square feet, equipped with an outdoor track, a putting green, and an indoor rock climbing wall.\r\n\r\nOver the past year, the company\u2019s holistic approach to brick-and-mortar stores and digital channels has been instrumental in serving customers. DICK\u2019S e-commerce sales surpassed $2.8 billion in 2020, a 100 percent increase. The strongest growth came from in-store and curbside pickup, as BOPIS sales increased more than 350% over the previous year."},{"acf_fc_layout":"image","image":439222,"image_position":"left","orientation":"horizontal","hyperlink":""},{"acf_fc_layout":"content","content":"With more than 850 stores across the country, DICK\u2019S Sporting Goods was well-positioned to cater to consumers replacing gym memberships with home exercise equipment due to pandemic restrictions, or jumping into outdoor sports to accommodate social distancing. Acting as mini-distribution centers, the stores helped the company fulfill online orders quickly and efficiently. Since these brick-and-mortar sites had been selected for their accessibility to consumers, they helped cut down on delivery times for online purchases.\r\n\r\nThe company was, in part, able to capitalize on such trends because it had already established a thriving network of physical stores in trade areas assessed annually by GIS analysts\r\n\r\n\u201cThe heavy lift of data here is massive,\u201d says Jack Holden, a GIS specialist and market research analyst at DICK\u2019S. \u201cWe\u2019re trying to get the result right, trying to get the right site, and help people understand the data to inform very important decisions.\u201d\r\n<h3><strong>Fact-Checking Assumptions with Location Intelligence<\/strong><\/h3>\r\nFive or so years ago, DICK\u2019S analysts wondered whether the relationship between physical stores and online shopping might ultimately be a cannibalistic one.\r\n\r\n\u201cThe traditional thinking then, mostly outside the organization, was that brick-and-mortar was going to be really hurt by e-commerce, and that we might not need as many stores,\u201d says Bill Grassel, director of real estate market research and strategy at DICK\u2019S Sporting Goods.\r\n\r\nOne of the benefits of location intelligence is that it checks assumptions against facts on the ground\u2014and this particular assumption ended up being wrong. \u201cA lot of the <a href=\"https:\/\/www.esri.com\/en-us\/arcgis\/products\/spatial-analytics-data-science\/overview\">spatial analysis<\/a> that we\u2019ve been able to do has said [that] when we add new stores, we actually see our entire omnichannel sales go up,\u201d Grassel says. \u201cUnless we had been able to analyze those customer behaviors at that level, we might have assumed, if we open a store, we\u2019re going to hurt our e-commerce sales and vice versa,\u201d he continues. \u201cBut we really found more of a symbiotic relationship between the two.\u201d"},{"acf_fc_layout":"quote","image":439192,"text":"Understanding our customer and the latest trends is important and something we\u2019re always trying to evolve.","author_name":"Jack Holden, DICK's Sporting Goods GIS specialist","author_profession_organization":""},{"acf_fc_layout":"content","content":"<h3><strong>The Sporting Life<\/strong><\/h3>\r\nThose and other location-based assessments are created by a team of four analysts that Grassel oversees. As one of the company\u2019s real estate directors, Grassel is responsible for shaping forecasts about whether the company should open a new site, which markets are becoming over-penetrated, and where new opportunities exist.\r\n\r\nThose decisions are ultimately approved by a real estate board. When Grassel and his fellow directors need facts to inform the board\u2019s plans, they ring up Jack Holden, a GIS analyst and evangelist who\u2019s driven by the desire to put the best data in his colleagues\u2019 hands, often via <a href=\"https:\/\/www.esri.com\/en-us\/smart-mapping\">smart maps<\/a>.\r\n\r\n\u201cI really enjoy looking at maps and what they\u2019re able to tell us, and the different things people are seeing even when we\u2019re looking at the same map,\u201d Holden says. \u201cGetting more and more people engaged with mapping is a goal of my position.\u201d\r\n\r\nBorn in England, Holden grew up using maps with his father to chart hiking adventures across Europe. He went to school for geography and learned GIS, then got his first job at the oil and gas firm Perenco, using spatial analysis to study water intake levels in wells and ways to reduce the harmful effects of salt."},{"acf_fc_layout":"sidebar","layout":"standard","image_reference":null,"image_reference_figure":"","spotlight_image":null,"section_title":"","spotlight_name":"","position":"Right","content":"<strong>Delve in to the Digital Twin<\/strong>\r\n\r\nJoin <em>WhereNext<\/em> for a <strong><a href=\"https:\/\/www.esri.com\/en-us\/lg\/publications\/finding-business-value-in-the-digital-twin\">webcast featuring Cisco, BNSF, and South Jersey Gas<\/a><\/strong>. Learn how companies use a digital twin to improve operations, supply chains, and customer responsiveness.","snippet":""},{"acf_fc_layout":"content","content":"When he joined DICK\u2019S Sporting Goods, headquartered just outside Pittsburgh, Pennsylvania, he was intrigued by the prospect of exploring a new sector, and found himself immersed in a different vocabulary and concepts unique to retail. \u201cGIS was my foundation,\u201d he says. \u201cIt\u2019s the common ground that I take from one industry to another.\u201d\r\n\r\nHis predecessor in the role at DICK\u2019S, Todd Henry, introduced GIS as an enterprise technology and established the system\u2019s analytical benefits. \u201cHe built the chapel; I\u2019m maintaining and updating it and helping the team learn how to worship there,\u201d Holden says. Part of that work involves fine-tuning the granularity of the data that real estate directors use to support decisions about store locations and market optimization. In the process, he often shows colleagues the next gear that GIS technology can achieve.\r\n\r\n\u201cOne of the things I think is most valuable about having someone like Jack on the team is to really teach us not only how to use [GIS] day in and day out, but also what it\u2019s capable of being used for,\u201d says Kara Tirimacco, a market research senior analyst at DICK\u2019S Sporting Goods who regularly presents location-based analysis to company executives."},{"acf_fc_layout":"quote","image":439202,"text":"GIS can help us determine how to best use data to help us plan for the future.","author_name":"Bill Grassel, DICK\u2019S Sporting Goods director of real estate market research and strategy","author_profession_organization":""},{"acf_fc_layout":"content","content":"<h3><strong>Locating Latent Demand<\/strong><\/h3>\r\nAfter 72 years in business and with more than 850 stores, DICK\u2019S\u2019s retail expansion is gradual and intentional. Accordingly, much of the work that Holden and his colleagues do focuses on market optimization.\r\n\r\nThey create trade area maps that help reveal the cause of certain trends\u2014like connecting a store\u2019s poor performance to an overconcentration of DICK\u2019S locations in that region.\r\n\r\n\u201cWithout having that spatial dimension and being able to look at a market holistically, you might just say, well, this store doesn\u2019t seem to be doing as well as it should,\u201d Grassel says. \u201cWhen you\u2019re actually looking at it spatially, then you have this geographic component, and a lot of times that helps explain some of the profitability things we\u2019re looking for.\u201d\r\n\r\nAs market research analyst Richard Boyles, one of Holden\u2019s colleagues, puts it, \u201cYou can\u2019t map out LA in a CSV file.\u201d"},{"acf_fc_layout":"quote","image":439212,"text":"When real estate directors are trying to understand the relationship between a particular geography and a store, location intelligence can be indispensable in tailoring the product mix or store size to the needs of the local community.","author_name":"","author_profession_organization":""},{"acf_fc_layout":"content","content":"<h3><strong>Mapping the Unexpected<\/strong><\/h3>\r\nIn addition to guiding the expansion of the retail network, GIS-based insight also helps DICK\u2019S respond to unexpected occurrences.\r\n\r\nThe onset of the COVID-19 pandemic was one such occurrence. The danger of the virus and the need to gather and share information quickly made maps and dashboards a natural fit.\r\n\r\n\u201cAs devastating as this whole pandemic has been, opportunities arise out of trying to answer some questions about a very serious subject,\u201d Holden says. In addition to directing colleagues to good sources of data on the pandemic and helping them create maps of their own, Holden produced dashboards showing where DICK\u2019S stores were open, where stores were closed due to shutdowns, and the location of points of interest like testing sites. \u201cWe saw that come to life in a map,\u201d Tirimacco says.\r\n\r\nThe use of GIS to chart COVID-19\u2019s effects showed colleagues how location data could be used in analytics at DICK\u2019S, Holden says. After map-based presentations, he and the team often field requests from coworkers asking if they can access the online GIS platform. \u201cIt\u2019s neat to get more people involved and try and educate people a little bit in the geospatial world,\u201d he says.\r\n\r\nAs markets recover, many consumers are anxious to get out of the house and engage in a little in-person retail therapy, making a fluid omnichannel approach a retail advantage. Thanks to its store-centered, location-smart strategy, DICK\u2019S Sporting Goods will be ready with its doors open and its e-commerce channels thriving\u2014serving customers however they choose to engage.\r\n\r\n&nbsp;\r\n\r\n<em>To learn more about the role of location intelligence in retail, explore <\/em><a href=\"https:\/\/www.esri.com\/en-us\/industries\/retail\/overview\"><em>these resources<\/em><\/a><em>. <\/em>"}],"references":null},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.9 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>DICK\u2019S Sporting Goods: Brick and Mortar\u2019s Contribution to Omnichannel Retail<\/title>\n<meta name=\"description\" content=\"DICK\u2019S Sporting Goods used location intelligence and retail ingenuity on its way to becoming the largest retailer of its kind.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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