Sporting Goods Retailers Prepared To Do Battle Against Amazon
Sports teams usually offer promotional merchandise to get better coverage without relying on media. The merchandise is frequently sent through courier companies that provide the cheapest courier quote. You will be astonished how much promotional coverage a sports team enjoys when an individual decides to use promo clothing that carries the team’s brand.
Dick’s Sporting Goods is prepared to do battle and defend its market share of private label’s brands. The retailer has become rather aggressive with promotions to drive customers to its brick and mortar store as well as its online store. According to Dick’s CEO Edward Stack, the shares of Dick’s were sinking by more than 21% because of the retailer’s weak profit output on the sporting goods industry.
Aside from Dick’s, the retailer’s partners and competitors are being dragged down. The shares of Hibbett Sports have sunk by more than 10% while the shares of Under Armour, Foot Locker and Big 5 Sporting Goods fell by about 4%. Even Nike’s shares went down by 1.8%.
There is a lot of panic in the industry which requires them to do heavier promotions and price cuts on athletic apparel and other stuff. Promotions are not only undertaken by the sport’s retailers but the brands that are on a direct to the consumer basis.
Another concern of Dick’s and its rivals is Amazon that is encroaching in the retail industry. It has been reported that the online retail giant has signed a partnership with Nike to sell its sports merchandise through Amazon.com. The partnership is a big threat to retailers of sporting goods that do not have a strong online presence.
Meanwhile, Nike has been very transparent with Dick’s regarding their deal with Amazon. Future plans of Dick’s include significant enhancement of the loyalty program to get a bigger share of the market while competition intensifies.
In order to be more competitive, online retailers need to seek for the cheapest courier quote in the delivery of products to their customers. This will allow the retailers to offer their customers fast and free delivery with full tracking service so that customers can conveniently track their purchases.