We’re all watching the continuing rationalization of our retail space. I suppose “rationalization” is a way too benign sounding word for a process that includes bankruptcies, store closings, job losses, margin hits, too much inventory, and struggles to increase sales and even to stay in business.
As ugly as this continues to be, there are going to be opportunities for the brands and retailers who get through it. I’m going to take some comments from Dick’s Sporting Goods most recent conference call to help us think about the upside and downside of the process. Dick’s, I suspect, will do just fine over the medium to long term because with the demise of The Sports Authority, there just aren’t that many larger, national big box competitors left (Academy has like 200 stores in 15 mostly southern states. Who else?). Dick’s ended their most recent quarter with 647 Dick’s stores. They also own Golf Galaxy and have some Field and Stream stores I guess.