Dick’s Sporting Goods is accelerating its strategy to expand its private brand portfolio and leverage its brands to better control its own destiny. The move is designed to help the retailer become less reliant on the ubiquitous national brands like Nike and Under Armour.
The retailer plans to expand its athleisure private brand Calia to 80 stores, and expand its private brand portfolio with the introduction of a yet-to-be-named outdoor apparel brand in the second half of 2019. Dick’s new private brand will replace a Reebok licensing deal that is scheduled to end. Dicks has set a sales target of $2 billion for its private brand portfolio and committed to investing the resources necessary to develop new products and promote their brands.
CEO Ed Stack addressed the strategic importance of private brand this past Tuesday, March 12, during the Dick’s Sporting Goods Inc Q4 2018 Earnings Conference Call.
“Our private brands will continue to be an integral part of this strategy to drive differentiation and exclusivity in our assortment. During 2018, our private brands remained strong growing double digits. As a percent of total net sales, our private brand sales increased to approximately 14% compared to 12% last year. In 2019, we expect a continued strength as our private brands will play an important role in our space allocation and assortment strategies.
We will expand CALIA’s footprint in approximately 80 stores, launch a new Athletic Apparel brand in time for back to school that will replace Reebok, and enhance the quality of our existing offerings with a focus on product innovation. To support this strategy, we will continue to invest in our product development team to help us reach our $2 billion sales goal in private brands.
In closing, 2019 is an important year in which we are making critical investments to fuel long-term growth and further solidify our leadership position. I’d like to thank all of our teammates for their hardworking commitment this past year and for their upcoming efforts in 2019.”