Speaking last week at Goldman Sachs’ Global Retail Conference, management at Dick’s Sporting Goods indicated that they expect to at least triple its e-commerce sales by the end of fiscal 2017.

“We've dramatically grown our e-commerce business and sales, and continue to invest in that business,” said Ed Stack, chairman, CEO and CAO, at the conference.

In 2011, e-commerce revenues for the company reached $184 million, representing approximately 4 percent, and is expected to be in excess of $200 million this year.

Stack said growth is expected to be driven by ongoing upgrades in website functionality, expanding content, and investing in new capabilities. A Nike microsite was recently rolled at dickssportinggoods.com in partnership with Nike. Leveraging its store base, Dick’s SG is in the process of rolling out order online and ship from store. Other e-commerce priorities includes improving its ability to manage inventory, expedite fulfillment, and “and move the profitability of our online business up significantly,” said Stack.

Return-to-store capabilities and enabling associate to order online for out-of-stock items in the store have been implemented at some stores. Both programs will be extended to more in the next few weeks. In 2013, pick-up in store capabilities will be rolled out.

Regarding profitability, Stack said, “We expect over the next several years we'll be pretty much ambivalent from a profitability standpoint as to where our sales come from, whether it's in the store or online. We feel that we can make this very profitable. We're working on this every single day.”

Regarding categories across the chain, Stack said he was particularly optimistic on growth opportunities in apparel, both on the athletic and outdoor side.

On the athletic side, in-store shops from key vendors have supported growth. By the end of the year, it expects to have 170 Nike Fieldhouse concepts as well as 100 Under Armour in-store shops. Dick’s SG also expects to have 91 North Face in-store shops in its flagship chain by year-end that will complement deeper commitments to brands like Spyder, Patagonia and Mountain Hardwear. Adds Stack, “There is nobody out there in the marketplace that's really kind of pulled all of those together. We think we've got a great opportunity there.”

Strong potential also exists in athletic footwear in not only escalating its technical running side but also with technology on the team side. As an example, he pointed to how Under Armour’s  $140 Highlight cleat endorsed by Cam Newton quickly sold out. He added, “We took the biggest position of any retailer in this cleat, and we couldn't keep it in stock, so there are some great opportunities there.”

Finally, lacrosse as a sport continues to “grow at a very rapid rate, faster than anything else,” with growth across genders and in junior high and high school. With the component and protective equipment side, the activity “can build a pretty good ticket, and we're pretty excited about that business,” said Stack.
Stack also indicated that private label products are expected to be north of $1 billion by 2015. Examples given were the just-acquired Top-Flite, Field & Stream, Adidas Basketball, Umbro in the soccer arena, and men's and women's athletic apparel from Reebok.

Asked about his expectation for consumer spending in the back half of the year and 2013, Stack said, “I don't think it's going to get meaningfully better or meaningfully worse unless something happens in the geopolitical arena that change that. But I think people are relatively calm, although not exuberant. I think they're relatively calm, and I think the environment will stay as it is today unless something really changes with whatever happens with the fiscal cliff with all these other things that can change the consumer's mindset. But if all stays equal as it is today, I think it stays relatively stable.”