Remember the growth in golf-related stores, such asGolfsmith and Golf Galaxy?

|

Maybe that expansion was a bit optimistic, given Dick'sSporting Goods' second quarter conference call. Thecompany posted terrific numbers, with comp-store sales increasing3.2 percent, above its guidance. But the growth came from thesporting goods side, which increased 4.1 percent, offsetting a 9.3percent decrease at Golf Galaxy. If you excludehunting, too, sales rose 7.8 percent.

|

“Golf continues to be our most challenging business,” saidexecutive chairman and CEO Edward Stack. “Golffrom a participation standpoint is in a structural decline and wedon't see that changing. We'll continue to see golf as a smallerand smaller percent of our business.”

|

Millennials, it seems, don't play golf,according to a recent WallStreet Journal article . It's pricey, takes hours to play andyears of practice to play well, and probably suffers from the imageof being something your grandpa did before the video game era.Today's young adults are focused on cycling (whichyou can do in larger groups), running,triathlons and the like.

|

Which may leave golf retailers scrambling. At Dick's, floorspace and dollars have been reallocated from golf items to women'sapparel, and teen and youth sports, and the company isconsolidating administrative functions, laying off more than 400golf pros. The company plans to open just one Golf Galaxy storethis year, even as it plans 46 new Dick's units and eightField & Stream stores for all of 2014.

|

Some 63% of Golf Galaxy's leases will come due over the nextthree years, so expect a few to close or be relocated.

|

“We're still being cautious,” Stack said. “We have a lot offlexibility with what we're going to do.”

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.