Dick's out of the golf business all together?

[iacas]

Lower. Wal Mart has the size to negotiate extremely low wholesale prices because they can double/triple/quadruple/etc. the product maker's bottom line just with their business.

Because then they are completely beholden to Wal Mart for a huge percentage of their business. Wal Mart can demand lower and lower prices, new models, etc.

While continually pinching them on cost.

And if WalMart drops the company, after they scaled their production to be 5x what it used to be or whatever, the business collapses.

[newtogolf]

Dick's invested heavily when golf was nearing it's peak and now that it's declining they would rather bail on it and wait to see what happens.  Financially it makes sense, they can always re-enter the market if it improves.  What the management of Dick's failed to realize is they are competing with other major chains (Golfsmith, PGA Superstore) plus themselves (Golf Galaxy).   Dick's would have been smart to rebrand their golf departments as "Golf Galaxy" and the stand alone stores as "Golf Galaxy Superstores" so that they could better leverage the customer loyalty and reduce marketing costs.  Instead they kept them separate and left the golf departments in Dick's stores to wither and die.

In my opinion this is the beginning of the end for Dick's because without a golf department or one worth visiting they will see sales drop in their other departments.  I'd often visit Dick's to see what golf clothes or clubs they had on clearance and also walk around the store and buy some other items on impulse.  I have no reason at all to visit the new Dick's that they just built two miles from my house once they get out of the golf business which means Sports Authority and online retailers will be getting all my money.

[NJpatbee]

Having worked as a consultant for a number of companies that sold products to Walmart, Walmart typically sets the price it will pay for items. If your standard products do not meet their pricing expectations, they will offer to purchase specially branded items including golf balls, or their own brand for items such as razors, healthcare products, or clothes. Walmart buys in extraordinary volume so you must be large enough to accept a smaller profit margin on a large quantity if items. They are also one of China's largest trading partners which adds more pressure on price.

DSG however, is not a Walmart in spite of its multi-billion dollars in sales.  It can cut some deals based on volume with the major golf manufacturers and also makes Maxfli and Top-Flite golf balls, allowing them to be extremely competitive.  Their mistake was gambling on increased sales of club sets and drivers and loading up their inventory.  In addition, many people (including myself) never looked at Dicks as a replacement for their local golf shop or golf pro for custom fitting, resulting in the failed PGA Pro initiative.  However, they do offer mostly brand name current releases of golf products.  They will stay in golf, but with a much more tempered and realistic offering.

[Abu3baid]

Ok, time for a little (very little), business 101.... Why do you think that you can buy stuff cheaper at Walmart than at a lot of other stores? Does the "pricing strategy" of all those other retailers "suck" because they don't price everything the same as Walmart?

The business strategy (never mind the pricing strategy) of anyone else who can't compete with Walmart on items of the same quality suck.. Yes! Don't need bus 101 thanks

[saevel25]

Save your patronizing for someone else.. I don't need bus 101 thanks! If you don't like my opinion which still stands, then don't comment on it and tell us your opinion instead!

Umm... For them to tell you their opinion, they have to comment on it. Just saying

[BrownCoast]

Why is everyone arguing??? Golf isn't a cool sport! I enjoy golf, but lets face it the fad has passed for a lot of people that took to it cause of the tiger craze from the mid 90's. Everyone can agree numbers across the board are down, from sales to memberships to just weekend warriors paying for a round here and there. This isn't just for DSG this is everywhere. Yes it sucks that Dicks shut down their golf line not cause they shut down their golf line but because people have lost their jobs.

[Crim]

Why is everyone arguing??? Golf isn't a cool sport!

That statement alone can start an argument. I've ALWAYS thought golf was a cool sport, even well before I started playing.

Apparently Jimmy Fallon thinks it's pretty cool too. And all the youngins wearing Puma orange as well.

Golf is NOT losing sales because it's "not a cool sport."

It's one of the most expensive sports is all, and people are more stingy with their money right now.

[BrownCoast]

[Crim]

https://www.youtube.com/watch?feature=player_embedded&v;=QFEYC4Z44v0

I can't watch that at the moment, but if they state anywhere in that video that golf is "not cool." or on a decline because it's "not cool."

Then they are wrong damn it...they...are...wrong.

[BrownCoast]

watch that video. There was a brief moment when people did think golf was cool (enter Tiger) never before that. Chicks didn't get impressed when guys say I play golf recreationally. Skateboarding is a cool sport, BMX is cool MMA is cool no those are not sports I'm into but thats where the trend is. Well maybe skateboarding has lost some popularity but it is still up there with the other sports.

Kids wearing orange thats just a trend, I guarantee you that! If Rickie switches to blue as his main colour then that will be the "new in colour" And if you followed trends, orange was a hot fashion colour a few years back not because of golf but just because! It just so happened that golf had a new face from OSU who happened to like his school colours.

[BrownCoast]

I can't watch that at the moment, but if they state anywhere in that video that golf is "not cool." or on a decline because it's "not cool."

Then they are wrong damn it...they...are...wrong.

why would they be wrong? Because you like golf therefore it is cool? You're quick to call a video that you haven't seen wrong but you can't even say why? Here lets simplify this, Why do you think golf is cool?

[Spitfisher]

Having worked as a consultant for a number of companies that sold products to Walmart, Walmart typically sets the price it will pay for items. If your standard products do not meet their pricing expectations, they will offer to purchase specially branded items including golf balls, or their own brand for items such as razors, healthcare products, or clothes. Walmart buys in extraordinary volume so you must be large enough to accept a smaller profit margin on a large quantity if items. They are also one of China's largest trading partners which adds more pressure on price. DSG however, is not a Walmart in spite of its multi-billion dollars in sales.  It can cut some deals based on volume with the major golf manufacturers and also makes Maxfli and Top-Flite golf balls, allowing them to be extremely competitive.  Their mistake was gambling on increased sales of club sets and drivers and loading up their inventory.  In addition, many people (including myself) never looked at Dicks as a replacement for their local golf shop or golf pro for custom fitting, resulting in the failed PGA Pro initiative.  However, they do offer mostly brand name current releases of golf products.  They will stay in golf, but with a much more tempered and realistic offering.

Very good and accurate post above. The PGA hire allowed them ( DSG) to secure lines such as ping, titleist, Cal and TM. many of which would not offer their premium equipement to DSG. otherwise. These premium brands were nervous selling to DSG, only when DSG announced to them that they were hireing qualified PGA personnel to sell! did these brands allow their product in their stores. Otherwise it would have been all lower line product and in some cases ( ping) none at all. It was the correct strategy, unfortunately a "perfect storm" arose in golf for the worse effect all retail. DSG also keeps the lights on for some manufacturers as well. I'm sure there could be a couple of golf companies that are beyond worried if this business goes south, which it will. Next up will be the small specialty dealers, many of whom are too dumb to sell anything, instead they provide golf equipement by stocking it on the floor. Our regional premium family owned 5 store chain of golf only retailer this year alone is down almost 30% month to date and there is still the fall. There is a Glut of golf gear out there, some speculate as much as 3+years worth with out so much as making one more golf ball, driver, golf bag or putter. Worse and this is where some people just don't understand the relevance of the retail and wholesale, as well as golf courses.......is there is no back fill of new golfers in the pipeline. guys my age ( 55 ) will play for the next 20 years, or so. Guys 30 will do the same. There really isn't a rightful percentage of 10-20 year olds playing golf, interested in golf that will be the future consumer of golf. Fewer kids and young adults are playing now than in the early 1960s. This is not short term problem- more like a decade or so..... Its not weather related- but it can further impact rounds. its not Tigers fault, because he did not boost participation, rather he will be known for boosting television ratings and purses. DSG decision will negatively I mpact wholesale, manufacturing and smaller retailers- it will not help the distribution Channels Too many manufacturers, making to many products in too high of quantity against a rapid shrinking consumer base.

[Spitfisher]

That statement alone can start an argument. I've ALWAYS thought golf was a cool sport, even well before I started playing. Apparently Jimmy Fallon thinks it's pretty cool too. And all the youngins wearing Puma orange as well.   Golf is NOT losing sales because it's "not a cool sport." It's one of the most expensive sports is all, and people are more stingy with their money right now.

Wrong, very little has to do with being stingy.

[Crim]

watch that video. There was a brief moment when people did think golf was cool (enter Tiger) never before that. Chicks didn't get impressed when guys say I play golf recreationally. Skateboarding is a cool sport, BMX is cool MMA is cool no those are not sports I'm into but thats where the trend is. Well maybe skateboarding has lost some popularity but it is still up there with the other sports.

Kids wearing orange thats just a trend, I guarantee you that! If Rickie switches to blue as his main colour then that will be the "new in colour" And if you followed trends, orange was a hot fashion colour a few years back not because of golf but just because! It just so happened that golf had a new face from OSU who happened to like his school colours.

I've been skateboarding for 15 years, train BJJ and Muay Thai kickboxing for 5 years now, trust me...chicks aren't all that impressed unless you're a professional at those things too.

I mean I started skateboarding when it was THE THING to do so there definitely was girls everywhere. But after about 5 years that died and skateboarding was looked at as a fad to a ton of people. MMA has to be on a major decline now too. The UFC is basically only shown at BWW when just a few years ago you could find the PPV's at a vast array of sports bars.

Golf has been around for how long now? It might be on a decline (compared to the last decade) but it isn't going anywhere. Anyone that doesn't think it's cool just hasn't played that much, they need to be reformed. I've brought a few of my skateboarding friends to the course in the past year, they're hooked now. It's pretty funny seeing Flip t-shirts and tattoo's on the golf course.

[Crim]

Wrong, very little has to do with being stingy.

How many comments have you seen lately show people saying that golf is too expensive?

A LOT. Everywhere, that's the main complaint I hear. Perhaps stingy was the wrong word for you?

Edit: speaking of skateboarding, you want to know my favorite part of skateboarding was and still is?

You could buy a really good complete for $80, then you're on your way.

Buying golf clubs/memberships/course rates can be intimidating. It doesn't have to be.

[ScouseJohnny]

Golf needn't be expensive. Walk, don't ride, and save the cart fee. Find deals at municipals or cheaper, public courses. Play 9 holes.

Thirty years ago, a set of good irons was quite a serious investment, even used. I remember when a pro shop would give a good trade-in price for a used set against new irons. But this week I watched a set of fairly recent (2011?) Cleveland TA7s in excellent condition get sold on ebay for not much over $100.

If you look at the history of American golf, the early 20th century saw the construction of many municipal courses, and it seems that there were plenty of blue-collar golfers. (See chapter 4 of this: http://tinyurl.com/mfv5tlf ). The link between the aspirational middle-classes and attempts to gentrify golf by upscale country clubs appears to have commenced between the world wars.

It may not be possible to put the genie back in the bottle and completely remove the lazy assumption that golf is a sport of the wealthy. However, that does not preclude marketing affordable golf.

And, of course, if you want to play golf in an expensive, moneyed environment (and can afford it), then good luck to you. It wouldn't be my cup of tea, but that's rather the point. That ought to be the best thing about golf. Whether you find enjoyment in playing the twilight $15 special at the local municipal, or playing on the manicured greens of some country club in the Hamptons, doesn't really matter.

But the myth that you need to be wealthy to play golf really should be dispelled, as much as is possible.

[boogielicious]

Why is everyone arguing??? Golf isn't a cool sport! I enjoy golf, but lets face it the fad has passed for a lot of people that took to it cause of the tiger craze from the mid 90's. Everyone can agree numbers across the board are down, from sales to memberships to just weekend warriors paying for a round here and there. This isn't just for DSG this is everywhere. Yes it sucks that Dicks shut down their golf line not cause they shut down their golf line but because people have lost their jobs.

I wouldn't call a sport that is over 500 years old a fad. Just because youth don't think it is "cool" at the moment, doesn't mean it will vanish.  Golf is what I call a "life sport".  You can do it at almost any age.  Most sports can't claim that.  A lot of the X-games type sports that young people find cool cannot be done by most people as they get older.  Golf enjoyed a brief time (compared to the age of the sport) where youth found it cool and may again in the future.  But the real demographic for golf are adults.  My son wanted nothing to do with golf until late in high school when his friends started doing it.

Business goes in cycles.  The industry that I am in is in a cycle right how where sales are down.  But I know that it will cycle back as it has done over the last century several times.  Same will happen with golf.  Dick's has made a business decision that they can reverse when the time comes.

And yes, it does suck when anyone loses their jobs.  I think we all agree on that.

[BrownCoast]

I've been skateboarding for 15 years, train BJJ and Muay Thai kickboxing for 5 years now, trust me...chicks aren't all that impressed unless you're a professional at those things too.

I mean I started skateboarding when it was THE THING to do so there definitely was girls everywhere. But after about 5 years that died and skateboarding was looked at as a fad to a ton of people. MMA has to be on a major decline now too. The UFC is basically only shown at BWW when just a few years ago you could find the PPV's at a vast array of sports bars.

Golf has been around for how long now? It might be on a decline (compared to the last decade) but it isn't going anywhere. Anyone that doesn't think it's cool just hasn't played that much, they need to be reformed. I've brought a few of my skateboarding friends to the course in the past year, they're hooked now. It's pretty funny seeing Flip t-shirts and tattoo's on the golf course.

I agree golf is fun! and I to have tattoos that are visible on the course and sometimes get the odd look from someone who just isn't into that.. I'm just saying it was cool to want to play golf or just playing golf when Tiger hit the scene. Now it has just gone back to what it was, with slightly better fashion. Hockey has been around for over 100 years and unless you live in Canada its not that cool. To golfers in the modern game (people that were between 12-30 years old when Tiger first hit the scene) there is far more things to be excited about. But now it just seems like unless you golf it is really hard to convince new people to take it up. people just aren't interested in it anymore.