Nathaniel Thiele

Here are some of the major differences I noticed when recently visiting Dick’s sporting good. Dick’s sporting goods has a lower number of employees per square foot than Academy. Dick’s also has a wider selection of items compared to Academy.

Academy focuses on selling key items but at high inventory turn rates while Dick focuses on more variety at a slighter higher price. Academy products are great for one use such as ammo, lures, clothes, and golf balls.

Dick’s focus is on increasing revenue because it has stores in most major markets. Dick’s also owns Going, Going, Gone, and Golf Galaxy. This allows flexibility and to put slightly different stores into the same cities.

Academy has fewer stores than Dick’s and only operates one brand. Both have strong family ownership. The Gochman family which founded Academy has a 13% stake in Academy. Dick’s has a 30% equity and 50% voting shares are owned by the Stack family. Family ownership remains important at both of the stores.

From a growth perspective Academy, Sports and Outdoors probably have 20 more years of growth before the market becomes saturated. Academy is only in about less than 25 states. However, in the future Academy will have to redefine itself much like Dick’s has.

Academy has also never made an acquisition meaning that compared to the debt of Dick’s it has much higher debt.

Long term both will survive as a duopoly in the sporting good retail sector.