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Dick's Sporting Goods, with 300 stores and over $2.5 billion in sales, can afford to pick up Golf Galaxy and add its $250 million in sales to the balance sheet. They also will have more leverage with suppliers than Golf Galaxy did. Dick's also has its own private label products and the Walter Hagen golf line that they can add to Golf Galaxy's offerings.What this is going to mean to the industry is that smaller retailers like GolfUSA, Golf, Etc., Nevada Bobs and others will continue to struggle and that franchised shop in your town might close. A small chain made up of independent franchised stores cannot compete with the better funded big box players. A Golf Galaxy or Golfsmith might have a 20-30,000 square foot store while a GolfUSA might have 2500 square feet.Yet, these companies are not the competitors that Dick's is worried about. It's Golfsmith. With 62 stores and a strong balance sheet coming off an IPO, Golfsmith is the only pure golf retailer Dick's has to worry about.As odd as this might sound, I believe that Golfsmith is a candidate for a takeover by one of the bigger fish in the sporting goods arena. With less than $400 million in sales, it might make a nice addition to The Sports Authority and their head-to-head, dog-eat-dog competition with Dick's Sporting Goods.
Hopefully nothing bad will happen to the store. I have been going to Golf Galaxy since it opened up in my neighborhood. It is actually one of the best golf stores in this state. Dick's just barely opened up here a couple of months ago so I haven't really seen their selection of golf equipment, but I imagine it will be a lot better than before. Hope this helps you out. Happy Holidays.

2006-12-14 19:26:40 · answer #1 · answered by Anonymous · 0 0

Spartan golfer is right on the money, ***** will now have a much greater selection of equipment. Plus one les competitor.

Actually I had never heard of Golf Galaxy untill one opened up in my area less then a year ago, It became my favorite golf store very quickly.

As long as it stays basically the same as it was I dont care who owns it, us golfers are the winners.

Leon

2006-12-14 18:48:09 · answer #2 · answered by Ltgolf 3 · 0 1

Yeah, Dick's will now have a better selection of golf products.

I live in California and the big sports store here is Copeland sports, whiich just closed last week.There are no Dick's here and the next major one is Sports Authority, which is far away and not that great.

2006-12-14 17:21:13 · answer #3 · answered by SG 5 · 1 1

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