Commentary

Dick's Tiny Move To Test Owned-Brand Power

Dick’s Sporting Goods already knows that its private-label brands are a powerhouse, generating $1.8 billion in sales last year. Now, it’s using its expertise in format innovation and experiential retail to play with a wholly different idea: a seasonal pop-up in New York’s tony East Hampton, which will rotate as a standalone expression of four different brands.

“We're always looking for ways to bring our house brands to life in new and meaningful ways,” says Aimee Waters, vice president of vertical brands. “We planned this as an opportunity to create a more immersive and curated experience for our athletes around these vertical brands and tell their story. We want people to be able to see these brands’ personality and character.”

And while East Hampton may not suggest an audience looking for bargains in their workout wear, Waters says it’s an ideal setting for showcasing the brand. “People are there actively seeking new experiences in the summer,” she tells Retail Insider. “Each of these brands have a unique identity and a unique personality, and we think that this small-format boutique experience allows that personality to shine.”

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The effort kicks off with Walter Hagen, Dick’s oldest store brand, and is tied to next month’s U.S. Open in nearby Southampton. It's also connected to multiple golfing activations, experiences and partnerships. Those are important, Waters says, because people want to see brands actively engaged in local communities. The pop-up also features first-to-market access to Maxfli’s new Tour X-LS golf ball.

In July, the shop changes over to Calia, the women’s lifestyle line, which features wellness, fitness-inspired moments, and coastal-inspired apparel, which Dick's launched as a private-label brand in 2015.* It is currently the retailer’s second-largest women’s apparel brand, behind Nike.

And in late August, the pop-up converts to DSG “Back to Sporthood,” Dick’s largest vertical brand, highlighting the retailer’s strong foundation in family value, school spirit, and youth sports experiences ahead of the fall season.

Waters is frank about how little the company has learned so far. “We’re five days in and heads down right now," she says. And while this pop-up may be small, the questions it's trying to answer are big. “We’re going to learn a lot about how the small format works for our vertical brands, and what activations resonate with product collabs and partnerships. How do we ensure that we're connecting with our community?”

*An earlier version mischaracterized the Calia launch. 

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