Claiming that it had the idea in the works even before the COVID-19 pandemic, Dick’s Sporting Goods recently noted its intention to open new stores under a different brand to appeal to and equip outdoor enthusiasts. The Public Lands store concept promises to stock high-end camping, hiking, biking, and fishing gear, giving people the tools they need to get outdoors and enjoy nature while also limiting their exposure to enclosed spaces, where the coronavirus is more prone to spreading.
Other retailers are already well positioned in this segment, such as REI and Patagonia, but Dick’s believes that its widespread appeal and reach give it some unique advantages. In its regular stores, outdoor gear only accounts for about 20 percent of the inventory. By highlighting these technical tools in its own stores, Dick’s hopes to drive customers seeking such forms of entertainment to its new chain.
Outdoor activities clearly have gained popularity and prominence during the COVID-19 pandemic, and other activities that Dick’s helps equip people for, such as indoor or team sports, have been driven into hibernation. Notably, sales in bicycling categories jumped 63 percent in June 2020 alone, along with a 31 percent increase in camping-related items and a 56 percent jump for paddleboards and related accessories. Dick’s also anticipates that demand will remain strong. The trends reflect more than just virus safety precautions, in that today’s consumers also seek more connection with nature and stress relief, two expansive goals that Dick’s believes it can help them meet with Public Lands.
For REI, these trends already have proven beneficial. Its sales of outdoor winters sports gear (e.g., skis, snowshoes) are exponentially higher for 2020 than they were for 2019. It also predicts that consumers will continue to visit its stores for their outdoor gear, without needing to try a new store to get their high-end gear.
Discussion Questions:
- Is the new Public Lands concept likely to succeed even after the effects of the COVID-19 pandemic have waned?
- What does Dick’s need to do to differentiate its offerings from those of existing outdoor retailers, such as REI?
Source: Tom Ryan, “Dick’s Sporting Goods to Test New ‘Public Lands’ Outdoor Concept,” Retail Wire, December 1, 2020