Shops are ‘crucial’ for Dick’s Sporting Items’ booming ecommerce gross sales

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Ecommerce sales increased nearly 200% year over year in the second quarter of Dick’s Sporting Goods’ fiscal year that ended August 1. In addition, the sporting goods retail chain found that online sales represented around 30% of total net sales in the second quarter, compared to around 12% in its fiscal year Q2 2019.

Overall, Dick’s posted the highest quarterly revenue ever at $ 2.71 billion, an increase of 20.1% year over year. Sales in the same store were up 20.7% year over year, even though around 15% of stores were closed for the quarter, the retailer reported. That compares to the second quarter of 2019, when sales in the same store increased 3.2%. All shops are open from June.

Dick’s Sporting Goods owes its strong sales to consumers who are transitioning to sportier and more active lifestyles as they spend more time working and exercising at home. According to Dick’s, much of the online sales growth can be attributed to omnichannel services, including the recently launched Curb service. In fact, the stores accounted for more than 75% of Dick’s Sporting Goods online sales in the second quarter, including roadside pickup, online purchase, in-store pickup, and in-store shipping.

“We continue to see our stores as a hub and they’re critical to our success,” said Joe Pietropola, senior vice president of e-commerce, to Digital Commerce 360. “Our physical stores are an unparalleled distribution hub for online fulfillment.” Dick’s ended its second quarter with 852 stores, and roughly all of them offer roadside pickup.

For example, stores are often physically closer to buyers than a warehouse and offer faster ship-to-door delivery. Additionally, buyers can receive online orders the same day if they choose to have in-store pickup, the retailer said. The ecommerce orders typically arrive with a buyer two to four days after the order is placed, Pietropola says.

“We pride ourselves on the fact that over the past two quarters, when our e-commerce sales reached unprecedented levels, we have improved delivery times for our customers,” says Pietropola.

However, like many retailers, Dick’s prefers when shoppers come into their stores because store visits result in more sales.

“Our stores also significantly increase awareness of our product offerings and then increase e-commerce sales because our customers who visit the stores understand the breadth of our offers and the quality of our goods,” says Pietropola.

Dick introduced roadside collection in less than 48 hours, retailer Digital Commerce 360 ​​announced, and will make the service available to customers on March 18. Roadside pickup uses the same technology and staff as online and in-store pickup, as both need to be picked up in-store. Inventory overview and employees to pick and stage the orders. What’s new for roadside pick-up revolves around customer communication. For example, on the roadside, Dick’s has to explain to customers how to pick up an order and notify the retailer via text or email that they have arrived.

“While it might not have been perfect at the start, we have worked continuously with our teams to identify and resolve issues quickly, improve the process, and make it smooth and easy for our customers to get what they need quickly and safely need, “says the retailer with no more revealing.

Because Dick’s was able to leverage existing technology and in-house staff, “the program started with minimal fees,” says Pietropola. He adds that roadside pickup accounted for more than 40% of ecommerce sales from March 18 to May 4, and that roadside pickup sales were 1,000% higher than BOPIS ‘sales during that period same period last year.

In terms of earnings for the second quarter, Dick’s announced to investors that there were fewer promotions according to a SeekingAlpha transcript, which added to profit margin. However, that was offset by increased shipping and fulfillment costs due to strong e-commerce sales, the retailer reported.

According to Pietropola, roadside collection and online in-store collection have helped improve profits.

“Curbside and BOPIS eliminate both shipping and packaging costs, helping to improve the overall profitability of our e-commerce business,” he says. The retailer plans to continue offering roadside pickup and believes this will be an important service over the holidays.

For the second fiscal quarter ended August 1, Dick’s reported:

  • Net sales of $ 2.71 billion increased 20.1% from $ 2.26 billion in the second quarter of fiscal 2019.
  • Net income of $ 276.8 million versus $ 112.5 million.
  • Mobile sales accounted for 50% of e-commerce sales.

For the first six months through August 1, Dick’s reported:

  • E-commerce sales rose 154% for the first six months ended August 1, accounting for 33% of net sales, compared to 12% for the same period last year.
  • Net sales were $ 4.05 billion, down 3.1% from $ 4.18 billion.
  • Net income of $ 133.4 million versus $ 170.1 million.

Dick’s is number 44 in the 2020 Digital Commerce 360 ​​Top 500.

Percentage changes may not exactly match the dollar numbers due to rounding.

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