Wednesday, June 26, 2013

How Dicks Sporting Good Dodges the Amazon Juggernaught

It seems that only the strong survive in retail with Amazon smashing everything in its path and Dicks Sporting Goods might be one of them.

Which is why Dick’s shareholders can take some comfort from that Deutsche Bank analysis. Looking at 190 of Dick’s best-selling products, the report found that only 12 were sold and shipped by Amazon itself. Of those 190 products, 55 didn’t appear on Amazon.com at all, even for sale by outside vendors.

We can point out one more way Dick’s is avoiding the A-bomb of retailing: guns and ammo. Dick’s new chain of Field & Stream stores, which will be aimed at hunters and fishers, will sell both. (Dick’s Sporting Goods stores don’t.) Go try to buy that on Amazon.

The idea that you can't buy a gun or bullets on Amazon is huge selling point. It is kind of like how Best Buy is jacking up their appliance sales. You can't drop ship a refrigerator all the way across the country for free so you have to walk in that showroom. Appliances will always dodge Amazon unless they can somehow gain a warehouse presence.

Dicks also prospers from the anti-government sentiment that you need a gun to protect your family from the NSA/IRS/Obama's drones/terrorists missed by NSA snooping/etc. People are lined up around the block at gun shows so that they can get some protection.

Also if you are a hunter or a fisherman you can only buy the majority of your hobby from a store like Dicks. I just can't picture a hunter buying a tree stand for hunting deer, or a fisherman buying a new reel (let alone a motor boat) without putting their hands on it first. I'm sure some of them might buy camouflaged clothes on Amazon but you would figure they would buy that stuff at the same time as shotgun shells or decoys. 

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