Golfsmith Sold...

raggmann54

Looks like Golfsmith has been sold to Dick's via auction by Branksruptcy Court.

http://golf.swingbyswing.com/article/report-golfsmith-bought-for-70-million-at-auction/?utm_content=2045&utm_campaign=Golfsmith_Bought_For$70_Million|_Monster_Snake_on_Tour_Course&utm_source=newsletter&utm_medium=email&utm_term=link-5

ode

Wow...not expecting that....DSG, Golf Galaxy,, and Golfsmith under same ownership....wander if we'll see golfworks components at Golfsmith?

PA-PLAYA

ode

I seriously doubt it. Golfsmith was more of a competitor to Dicks than Golfworks, and I think Dick's probably looked at it as a break-even option to avoid someone else coming in and buying them out and taking a bigger chunk out of their marketshare.

Release

Keeping 30 locations open, for now.....
I wonder how many location they will close down.

sdandrea1

Release Keeping 30 locations open, for now.....
I wonder how many location they will close down.

At least 79 to be closed................for now.

Release

sdandrea1

This will mean the current employment level at the Dick's and the other stores will be reduced after the acquisition.
More closure unless the location for the G.S. current stores are different than the Dick's. NO sense competing with self.

Don't really understand the move by Dick's acquisition of G.S. now. While other are unloading or getting out of the segment.

sdandrea1

Release

Maybe Dick's makes enough revenue/profit from all the non-golf sales to carry the risk?

Par4QC

Release Don't really understand the move by Dick's acquisition of G.S. now.

Same here.

Maybe they got inside info that the Lynx balls are better than the Slazengers!! That's only 1 of the 2 diffs I see between Dick's and GS, the other being the GS Clubmaking Schools.

Has to be for the real estate.

mikeintopeka

I don't have a Golfsmith near so I've never shopped in one or know their business model. Do they employee PGA pros to run their stores and provide training for merchandising, fittings, etc.?

sdandrea1

mikeintopeka

The one here in my area has a bunch of know-it-all's but I don't know if they are PGA pros.

Release

sdandrea1 The one here in my area has a bunch of know-it-all's but I don't know if they are PGA pros.

PGA wanna be ? Lots of broken dreams.

I hope Dick's needs the write off because this is not a good tome to expend into the golf equipment industry.

raggmann54

Probably cheaper than expanding the current Golf Galaxy stores. Only keeping 30 of Golfsmith's approx 150 locations. Transfer all the inventory to the 30 stores, take the write-down/write-off for the closures and the expense of opening 30 new Golf Galaxy's is rather cheap. The profit in these stores is in the soft goods, not the equipment end - $110 for a Nike shirt...

Release

raggmann54 $110 for a Nike shirt...

Made of wires from 14K gold ?

Typhoon

Thank God the one near me is staying. I know everyone there, they have a feat putting green. Gives me a nice hour break in the middle of the day. In the winter

mcavoy

Par4QC Has to be for the real estate.

Not 100% sure I agree there. A lot of GS stores don't have the footprint to be a Dick's. The only one I'm aware of in CA is the one in Palm Desert (a Superstore that also does tennis) and GS already had announced they are closing that one. The one closest to me is in Upland and I don't have high hopes for that location since there is a Dick's right across the street.

Release

Par4QC Has to be for the real estate.

Highly unlikely. Although possible.

Real Estate value had peaked in the fast growing area, residential or commercial had been slowly losing the momentum from a few years ago. Commercial property react much slower than the residential property but we could see the shifting of direction.

Anything of any value should be judged upon the desirability and the affordability factors ( a willing and able buyer or multiple buyers ). I don't see merging new business able to take over the existing commercial property, or affording the lease rate. The current building of new commercial property should be a thing in process which probably started years ago and committed to be finished. Had seen a bunch of small to medium commercial property for sale from all over the Nation since about 18 months ago.

mcavoy

I was thinking maybe Worldwide Golf Shops (Roger Dunn, GolfMart, Vanns, Edwin Watts) might try to get them. The Edwin Watts acquisition gave them greater southeast presence so thought buying GS might enable them to expand their empire a bit but sadly no. They have the best returns policy in the business.

Release

mcavoy

When a store carries the same basic merchandise as the rest of the crowd and the price line is not competitive, it probably has a back door marketing department using the internet to move the volume and sustain the margin for survival.

A couple of the local stores do this. So better to bid on the internet to pay less for the same stuff they carry in the store.

A few of the OEM had already expand into the cyber marketing.

azgreg

I was in Dick's today and talked to the golf dept. manager. It was his understanding that they will close all but about 30 Golfsmith's. The ones that stay open will be under the Golf Galaxy name.

sdandrea1

azgreg I was in Dick's today and talked to the golf dept. manager. It was his understanding that they will close all but about 30 Golfsmith's. The ones that stay open will be under the Golf Galaxy name.

I've seen this statement somewhere.............................it's like deja vu all over again. 😃