Issue No. 9: DICK’S Sporting Goods - (RE)-embracing the outdoors ⛰
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In this week’s edition:
DICK’S Sporting Goods origin and role in the Outdoors
National Brotherhood of Skiers Celebrate 50 years
Musk’s Master Plan for Tesla may just involve saving the world
And more!
— Scott Crowder
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DICK’S Sporting Goods - (RE)-embracing the outdoors ⛰
Outdoor Origins - DICK’S Sporting Goods has come a long way since Dick Stack founded the company with $300 back in 1948. Most people don’t know the original store opened by Dick Stack wasn’t a store selling traditional sports equipment but rather a bait-and-tackle shop in Binghamton, NY. Stack, an avid fisherman, was working at an Army Surplus Store when the store owner asked Stack to compile a list of equipment needed for the store to expand its offerings to include fishing tackle. After working to develop a list and presenting it to the owner, Stack who was only 18 years of age, was told he was “just a dumb kid.” Furious and upset, Stack quit and with the encouragement of his grandmother, he opened his own store. He expanded his offerings in 1952 to include camping gear and apparel but it took him over 22 years to open a second location.
Family Business & Growth - In 1971, Stack opened his second location. Later, his sons joined the family business and eventually purchased the company from their father in 1984. Under their leadership, they expanded product lines to include sports equipment and apparel and moved the headquarters to Pittsburgh. By 1996, they had opened their 50th store, they topped 100 stores by 2000 and went public in 2002. In 2013, DICKS launched its first Field & Stream store in Cranberry Township, PA to cater specifically to the hook-and-bullet crowd.
Outdoors & DSG - Currently, DSG operates over 850 locations, including DICK’S Sporting Goods, online e-commerce, and specialty concepts like Public Lands, Golf Galaxy, and Warehouse stores. In 2018, after a number of mass shootings and years of facing backlash for selling assault-style weapons and high-capacity magazines, DICK’S decides to rethink its Field and Stream outlets, with its focus on hunting and guns. In 2019, DICK’s sold 8 of its 35 Field and Stream locations to Sportsman’s Warehouse Holdings and conducts a strategic review of its hunting business. To continue its role, DICK’s enters the gun reform conversation and expands on its mission to impact conservation efforts.
The self-reflection and steps taken between 2018 and 2020 on its gun business to the massive interest in outdoor activities during the pandemic led DICK’s to conceptualize a new outdoor concept shop.
Enter Public Lands - DICK’S ultimately launched its first Public Lands specialty store in September of 2021, and has continued its effort to be a big player in the outdoor space. After one year, DICK’S has almost doubled its Public Lands locations, many of which are replacing the Field and Stream concept stores. A giant script is visible for all to see inside these Public Land stores - “We exist to celebrate and protect lands for all.” In this ethos, DICK’S has set aside 1% of all sales during National Public Lands Day to support local and national partners dedicated to conservation and increasing access and equity in the outdoors. In its first year, Public Lands Fund, a program housed within the DICK’S Sporting Goods Foundation was able to donate over $500,000 to 15 organizations. Also, launched last year in an effort to create a circular economy around its stores and the product it sells, DICKS piloted an in-store buyback program in partnership with Out & Back, a Denver-based online platform. Both organizations will donate one percent of the value of offers given to sellers to 1% For The Planet as part of the partnership.
Doubling Down - Just last week, DICKS announced its most recent expansion into the Outdoor Space with its acquisition of e-commerce player Moosejaw from Walmart. Moosejaw was acquired by Walmart in 2017 for $51M to enhance its e-commerce offerings. Some analysts speculate the sale might infer some challenges Walmart has experienced in integrating some of its acquisitions into its broader portfolio and overall strategy. Others take a stance that Walmart was able to accomplish what it wanted from its acquisition having grown its e-commerce business on Walmart.com from 70 million items at the time of the acquisition to now include over hundreds of millions of items. Todd Spaletto, President of Public Lands and Senior Vice President DICK'S Sporting Goods, said, "We believe there's potential to grow the Moosejaw business and provide compelling experiences and an expanded product assortment to its millions of loyal customers." The terms of the deal were not disclosed but as of this fall, DICK’S held $1.4 billion in cash and equivalents. On the news of the acquisition shares of DICK’S closed at $129.96 a small 0.50% increase.
What we are watching - DICKS is a big player in the industry and its continued investment only bodes well for the space. The lingering potential of a recession and other retail players posting lower-than-expected results have led Citi Research to downgrade DICKS stock from “buy” to “Neutral” just last week. We will be watching the economy closely and the future expansion of the Public Lands concept as well as how DICK’S integrates the recent acquisition of Moosejaw into their offerings. We do believe however that founder Dick Stack would be happy with the renewed focus on the Outdoors!
Business, Industry & Economy:
Cotopaxi Founder, Davis Smith joins Fortune‘s Leadership Next podcast with Cecilia Chao, managing director of Bain Capital's Double Impact Fund, who invested in Cotopaxi. The conversation ranges from the origin of the company to the difference between ESG and impact investing.
Bloomberg takes a deep dive into ski resorts’ future in a world of the climate crisis. The comparison photos will. 🤯
📱 Vail Resorts 🤝 T-Mobile sync up to enhance 5G coverage across Vail Resorts’ entire portfolio. Thirty-six resorts saw over 17 million visits in 2022 - these people need to access their social while on the slopes ⛷
Rebuy, the premier personalization platform for online retailers with notable clients such as Liquid Death Mountain Water and Patagonia just raised $17M in a Series A round of funding.
Garmin might need to recalculate the route - the tech giant reported a 71% drop in operating profit in its cycling and fitness division for 2022 claiming the “pandemic bubble has burst.”
Motorola delivers Defy Satellite Link giving users the ability to communicate with their phones from…well (almost) anywhere.
🌏 Nice start to 2023 for 1% for the Planet. The international organization whose members contribute at least one percent of their annual revenue to environmental causes to protect the environment added 354 new members during the month of January.
Four-part series launched by Outdoor Recreation Roundtable to promote working in the outdoor industry and upskilling to land your dream job.
🏂 If you have tried to buy gear from Burton you might have ended up empty 🤷♂️ - the largest snowboard company in the world was hit by a cyber attack which has left its e-commerce capabilities unresponsive since February 14th.
A $128.9M write-off led Yeti Holdings, Inc to post a fourth-quarter loss - the write-off was for recalled inventory that included magnet-lined products. The company still experienced a 1% increase in sales.
Moosejaw had a big week - announcing its recent acquisition by DICK’S Sporting Goods and announcing finalists for its next Outdoor Accelerator Program. Voting is currently open through March 6th.
🚤 The boating industry is expecting things to “normalize” after a crazy few years fueled by the pandemic. Boats Group released its Annual Market Index which paints a picture of smooth waters and rough seas ahead.
🗓 Mark your calendar and book your flights - It is time to register for Outdoor Retailer Summer Show - June 19-21 in Salt Lake.
The Confluence of States makes a big move in solidifying its role as convener of State Offices by hiring Maribel Castañeda as the organization’s first Manager.
Health, Wellness, & Fitness:
Meta was given green light 🚦 to move forward with its acquisition of popular Virtual Reality company Within Unlimited, makers of the popular VR fitness app Supernatural after the FTC drops their case.
Bloom Nutrition lands deal to have products available in more than 1787 Walmart locations.
😴 Another week and another study telling us something our moms used to - sleep is good for us - the crazy thing is according to the study good sleep habits more positively impact men over women .
FitBit might be a little unhealthy as a company - plagued by server issues, and Google’s decision to eliminate some community features has left many customers thinking about what’s next.
First-time hiker (she is 27 years old!) details her foray into the activity in hopes of influencing and helping others.
Sustainability, Conservation & Environment:
🐄 So cows and the dairy industry no longer have complete control over the word “milk” - the FDA proposes a new federal rule that allows plant-based alternatives to continue to use the term in association with their products. Oats, Soy, Almonds, and cashews rejoice!
From Patagonia’s Yvon Chouinard to Walmart’s Alice Walton here is a list of Billionaires who are doing more than just talking about Climate Change.
Scientists claim to have found a cheaper way to recycle plastic.
It might be the end of February but some ski resorts have already closed for the season due to warm weather and lack of snow.
🌊 Ocean Tech just might be the new frontier in Climate Tech - TechCrunch finds out how startups and investors are thinking about ocean conservation tech and the opportunities it holds.
On the back of Spirulina - a blue-green algae with multiple health benefits - Iceland might just become the prominent player in sustainable protein production in Northern Europe.
❄️ Crazy weather - DC sees 85 degrees and LA has snowfall.
Five Countries - Switzerland, Netherlands, Monaco, Costa Rica & Iceland - Five sustainability initiatives we can learn from.
Greta Thunberg joins climate activists in Norway to protest a wind farm that impacts native herders who raise reindeer.
At Tesla's inaugural investor day event - Elon Musk laid out a $10 Trillion plan to save the world by building a “sustainable energy economy.”
Diversity, Equity & Inclusion:
In hopes of creating a more inclusive community around skiing this letter to the editor makes the case for abandoning the term “fat ski” from our vocabulary. “The term “f*t skis” to describe wider skis is derogatory and insensitive to those who may be overweight or obese.”
National Brotherhood of Skiers celebrated its 50th Anniversary in Vail where over 2,000 black skiers and riders celebrated the camaraderie and community they share around the slopes.
Travel, Tourism, & Hospitality:
Americans spend more time working which coincidently means they spend less time vacationing. A new study from researchers at the UCLA Anderson School of Management found simply treating a weekend as a vacation can boost overall happiness. 😁
🏕 An enhanced filter feature now allows users to browse over 450,000 listings on Hipcamp to find the best glamping site, tiny home, or cabin. The new filter includes terrain options like farms, or vineyards and added amenities “such as showers, hot tubs, Wi-Fi, cooking equipment and more.”
Greenlands’s 35-year-old Prime Minister sees Tourism as a way to diversify its economy however hopes to avoid the over-tourism experienced in neighboring Iceland.
🚲 There are a lot of ways to travel but if you like bikes and you like rafts, boy oh boy do we have something for you. The Bikeraft Guide lays out the origins of Bikerafting and provides some epic adventures for you, your bike, and your raft.
Leisure spending trends as tracked by Bank of America show mixed trends for the start of 2023 - Ski traffic is down but spending in the Caribbean is up but expected to slow across the next few months
🛳 Norwegian Cruise Lines is altering itineraries and making some customers upset in the process. The itinerary changes according to the company are all in the name of sustainability.
If you ever wondered how to have a sustainable ski trip - here it is and it includes traveling by train, eating vegan, EV taxi, and rental equipment from EcoSki.
So there are other things to do in Aspen besides skiing - who knew?
Bentonville, Arkansas is the Mountain Bike Capital of the World here is an inside look at the trails, culture, and businesses that call it home.
The Appalachian Mountain Club is famous for its hut-to-hut hiking across its vast network but when the snow is on the ground many decide to slap on some skis and make it lodge-to-lodge skiing
Government, Grants & Policy:
The US Department of Energy has awarded $68m to 53 small businesses spanning 23 states that are “developing technologies to cut emissions and study climate.”
The Winter deadline for Access Fund Climbing Conservation Grant closed on March 1st - Summer rounds close on August 1 - Here is a list of projects that were funded last round.
On Wednesday, the U.S. Environmental Protection Agency announced $250 million in funding to help state and local governments develop plans to lower greenhouse gas emissions and advance environmental justice.
The EPS is pushing for cleaner water but Congress is threatening to repeal it - Outdoor Alliance wants you to tell Congress to pound sand
Quebec Ski Resorts receive $5M from Canadian Government for investment in innovative new equipment to “improve their visitor experience and provide a sustainable and eco-responsible tourism product.”
If the SHRED Act passes Colorado estimates its National Forests could receive millions which are currently funneled out of the state into the general treasury.
Gear & Gadgets:
💪 Under Armour has joined the Ellen MacArthur Foundation’s Network a leading international charity that works with businesses, academia, policymakers, cities, and thought leaders across the globe to promote the circular economy.
Milliken & Co, a global textile manufacturer has agreed to eliminate PFAS from its products by the end of the year. Remember last week REI announced it will remove all products with harmful chemicals by the fall of 2024.
🏂 Without Snow - snowboarding is just boarding so many snowboard brands are changing their strategies and joining the policy debates on climate change.
😎 Bajio Sunglasses 2023 Collection includes frames made from plant-based Nylon that biodegrades quickly and is gentler on our oceans.
🧊 Moosejaw might have split from Walmart but that doesn’t mean their relationship is on ice. They just launched the Moosejaw Cooler Collection to be sold at Walmart.
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