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Dick’s Sporting Goods brings its outlet strategy to D-FW in Plano, Frisco and Arlington

A pop-up vs. permanent outlet strategy allows Dick’s to ‘try before we buy,’ said CEO Lauren Hobart.

Dick’s Sporting Goods has a clearance strategy that’s also a real estate play — and the Dallas-Fort Worth market is starting to see it.

The Pittsburgh, Pa.-based chain of 853 stores and $12.5 billion in sales last year has opened a Dick’s Warehouse store in Plano’s Preston Shepard Place shopping center.

The outlet, located in a former Stein Mart, may not be there for a long time. Or, it could turn into a permanent Going, Going, Gone! value concept that the largest U.S. sporting goods chain has created to better handle its clearance merchandise.

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Dick’s has 15 Going, Going, Gone! stores and about 40 warehouse stores. The plan is to convert 10 more warehouse stores into Going, Going, Gone! locations, said Navdeep Gupta, Dick’s chief financial officer. Gupta was speaking with analysts Tuesday during a conference call to review quarterly results.

The outlet strategy, which Dick’s started about three years ago, results in better clearance margins and makes room for more regular-priced merchandise in Dick’s Sporting Goods stores, Gupta said. That’s leading to higher sales at the regular Dick’s stores, he said. The outlet stores are also attracting new customers, he said.

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The action-packed store name is about moving merchandise out the door. Going, Going, Gone! stores sell swimwear starting at $10 and golf apparel at $9.

There are none in Texas yet. But there’s potential for one.

Two more Dick’s Warehouse stores are in Frisco at 5550 Preston Road in Preston Lebanon Crossing and in Arlington at 5425 S. Cooper St. in Cooper Oaks Crossing.

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The retailer has 16 regular Dick’s Sporting Goods stores in D-FW that feed the warehouse stores.

Dick’s CEO Lauren Hobart said told analysts Tuesday that the “pop-up versus permanent is an ongoing part of the strategy because we are doing what we’re calling try before we buy in terms of putting permanent locations.”

The temporary warehouse stores are easily opened and can shut down if it’s either the wrong location or the retailer doesn’t need it anymore, Hobart said.

Dick’s has a couple of other concepts: Dick’s House of Sports with an experience focus and Public Lands, which is about outdoors and similar to REI. In March, it purchased outdoor retailer Moosejaw from Walmart.

Dick’s on Tuesday reported a profit of $304.6 million on sales of $2.84 billion in the quarter ended April 29, compared with a profit of $260.6 million on sales of $2.7 billion the prior year.

Twitter: @MariaHalkias

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