If the news last week about the pending merger between May Company and Federated tells us anything it is that retail consolidation is probably far from over. Sports Executive Weekly wonders if the two largest department stores in the country can merge, what’s in store for the sporting goods industry? Based on the reports coming out of the top three public sporting goods retailers and one outdoor retailer last week, there are clearly two stronger players in the market with a defined operating strategy that guides them through growth, merger integration, weather impact, and changing merchandise trends. The other two, well let’s just say they’re still trying to find their way as one works through what looks like a never-ending integration process and the other tries to establish itself in a market that is clearly over-stored for the size and growth prospects of the business.

Dick's Sporting Goods beat guidance in the fourth quarter, again by starting from a conservative outlook on growth and performance on a macro level and then executing to the strategy at a very granular level. According to most every vendor that Sports Executive Weekly speaks with, the biggest difference between these guys and their largest rival is that Dick’s is an operational machine. Estimates have been made that Dick’s can get product through their systems in days while it takes the other guys weeks to execute the same task. That reality has vendors more than willing to bend over backwards to work with Dick’s on product they know will get onto the floor – and then sell through.

Case in point can be the fact that Dick’s is the only retailer SEW can point to that reported strength in the NFL Licensed Apparel category in Q4. Yes, the market shifted to more of a fan-based business last year and Dick’s was well-positioned with strong teams in their markets, but others has stores in New England and Philly as well. SEW would be willing to bet that Modell’s also did just fine.

The secret to success in the fan-based business is the ability to execute weekly to wins and losses, getting goods on the floor where you need them — and off when you don’t. Dick’s chairman and CEO Ed Stack even called out the success his merchant team had chasing goods, indicating that they received an award from one vendor for their execution.