Dick's Buys Golfsmith at Bankruptcy Auction

[jamo]

29 minutes ago, billchao said:

Both of the Golfsmith locations near me are closing. Combined with the Golf Galaxy that closed earlier this year due to lease issues, there will soon be no major golf stores within 25 miles of me.

There are two (3 maybe) DSG within a reasonable drive from me but their golf department sucks.

That's what I was saying earlier. It's almost like it's swinging too far in the other direction. I'm very curious to see if someone else steps into that space. 

[CarlSpackler]

I sent a Tweet to DSG and let them know that I was very unhappy with their decision to close the local Golfsmith stores and would refrain from shopping there as a result. Me alone won't do any good, but I encourage everyone to voice your opinion. 

[rkim291968]

Two of the stores near me will stay open as Golf Galaxy.   I've confirmed it from a person who works there.   He is not certain if GolfTec will stay.

Bought two pairs of golf shoes to support the store (and I'd need the shoes eventually in the future after the current one is worn out).  

[David in FL]

10 hours ago, CarlSpackler said:

I sent a Tweet to DSG and let them know that I was very unhappy with their decision to close the local Golfsmith stores and would refrain from shopping there as a result. Me alone won't do any good, but I encourage everyone to voice your opinion. 

Um, they're closing the stores.  I imagine that they realize that we won't be shopping there....  

Really surprised that they're closing ours, given the area.  That really leaves Orlando with almost no golf specialty stores other than a Golf Galaxy and a PGA super store, both close to each other and on the other side of the world from me.  I would have thought the Altamonte location would have survived at least.

Any idea when they're closing?  I need to regrip before they do!

[iacas]

10 hours ago, CarlSpackler said:

I sent a Tweet to DSG and let them know that I was very unhappy with their decision to close the local Golfsmith stores and would refrain from shopping there as a result. Me alone won't do any good, but I encourage everyone to voice your opinion. 

GolfSmith was going bankrupt. They were probably going to be closed anyway.

12 hours ago, billchao said:

Both of the Golfsmith locations near me are closing. Combined with the Golf Galaxy that closed earlier this year due to lease issues, there will soon be no major golf stores within 25 miles of me.

There are two (3 maybe) DSG within a reasonable drive from me but their golf department sucks.

They might beef up their golf section now that major competitors are missing.

[mcanadiens]

As close as the local Golfsmith was for me, it's a bit more expensive that my limited entertainment budget allows for. I'd wander in there a few times and look at clubs, but could never bring myself to pull the trigger.

That said, fewer options and less competition for our dollars will ultimately mean higher prices.

[newtogolf]

13 minutes ago, David in FL said:

Um, they're closing the stores.  I imagine that they realize that we won't be shopping there....  

Really surprised that they're closing ours, given the area.  That really leaves Orlando with almost no golf specialty stores other than a Golf Galaxy and a PGA super store, both close to each other and on the other side of the world from me.  I would have thought the Altamonte location would have survived at least.

Any idea when they're closing?  I need to regrip before they do!

Each store will be closed once sufficient percentage of merchandise is liquidated, I'm not certain what the final date for all stores to close is.  I went to my local Golfsmith yesterday and they were sold out of most of their grips and they also sold their regripping tools, so it might already be too late.  

Based on what I've been told and read it seems Golfsmith failed because they didn't manage their payables well and appears to be another case of a business thinking it's too big to fail.  

Golfsmith kept extending their credit with manufacturers and paying late thinking they were too big and important for the manufacturers to deny credit to them, they were wrong.  The manufacturers refused to deliver new products without payment of most of their outstanding debt.  At that point Golfsmith went into a downward spiral.  

Golfsmith had 109 stores which is pretty significant and given the failure of Sports Authority and closing of most Golf Galaxy's this has to have an impact on the manufacturers revenue.  The manufacturers should place greater emphasis on golf course pro shops and smaller retail stores but the loss of a major retail outlet is going to impact all of the manufacturers.  Short term manufacturers will have to deal with the loss of receivables from Golfsmith, long term they will have the impact of at least 79 less golf super stores selling their products.  

[David in FL]

12 minutes ago, newtogolf said:

Each store will be closed once sufficient percentage of merchandise is liquidated, I'm not certain what the final date for all stores to close is.  I went to my local Golfsmith yesterday and they were sold out of most of their grips and they also sold their regripping tools, so it might already be too late.  

Based on what I've been told and read it seems Golfsmith failed because they didn't manage their payables well and appears to be another case of a business thinking it's too big to fail.  

Golfsmith kept extending their credit with manufacturers and paying late thinking they were too big and important for the manufacturers to deny credit to them, they were wrong.  The manufacturers refused to deliver new products without payment of most of their outstanding debt.  At that point Golfsmith went into a downward spiral.  

Golfsmith had 109 stores which is pretty significant and given the failure of Sports Authority and closing of most Golf Galaxy's this has to have an impact on the manufacturers revenue.  The manufacturers should place greater emphasis on golf course pro shops and smaller retail stores but the loss of a major retail outlet is going to impact all of the manufacturers.  Short term manufacturers will have to deal with the loss of receivables from Golfsmith, long term they will have the impact of at least 79 less golf super stores selling their products.  

Yeah, I get that.  

I was just asking @Carl Spackler if he had any insight to ours specifically.  I need to run over there anyway.  I'll see if they have a better estimate.

[CarlSpackler]

39 minutes ago, David in FL said:

Um, they're closing the stores.  I imagine that they realize that we won't be shopping there....  

Really surprised that they're closing ours, given the area.  That really leaves Orlando with almost no golf specialty stores other than a Golf Galaxy and a PGA super store, both close to each other and on the other side of the world from me.  I would have thought the Altamonte location would have survived at least.

Any idea when they're closing?  I need to regrip before they do!

It's DSG that I am boycotting. I don't have dates, only second hand information from a guy I played with this weekend. I was surprised too that they would close the stores here too.

Here is a list of stores that will remain open.

[David in FL]

5 minutes ago, CarlSpackler said:

It's DSG that I am boycotting. I don't have dates, only second hand information from a guy I played with this weekend. I was surprised too that they would close the stores here too.

Here is a list of stores that will remain open.

Unfortunately, with GS closing, my local Dicks is about the only place that I can buy premium balls and gloves locally now...

...well, unless I want to spend $60/dozen at the club.  They already get enough of my money each month though!  

[CarlSpackler]

 

13 minutes ago, David in FL said:

Unfortunately, with GS closing, my local Dicks is about the only place that I can buy premium balls and gloves locally now...

...well, unless I want to spend $60/dozen at the club.  They already get enough of my money each month though!  

You don't get free balls and tees there? 

Here you go. Support the movement! Boycott Dicks!!!

[natureboy]

15 hours ago, newtogolf said:

Based on what I've been told and read it seems Golfsmith failed because they didn't manage their payables well and appears to be another case of a business thinking it's too big to fail. 

From what I read GS got taken over in an overly optimistic leveraged buyout and even though sales were decent, they couldn't keep up with the debt servicing when the economy went south and sales dropped. They managed to limp along for a few years hoping things would pick up again, but the turn didn't come quickly enough.

[DeadMan]

The Golfsmith within 3 miles from my house is closing, which sucks. It was a small store, though, so it's not a huge loss. I still have 3 other golf stores within 30-45 minutes of me. The real negative is that it will be a lot more difficult to get my clubs regripped.

I'm going tonight to see what deals they have. I don't have high hopes, although maybe I snag some used clubs at cheap prices. Might actually regrip some clubs now with them so I don't have worry about that for a while.

[WUTiger]

On 11/7/2016 at 6:24 PM, newtogolf said:

Golfsmith purchased Zevo Golf Company (manufacturer of Snake Eyes) in 2004 along with all of the intellectual property (patents).  I'm guessing those patents now belong to DSG.

I used an Air Zevo driver from 2000 to 2008. But, I never knew where it came from. Thanks for the backgrounder. 

[WUTiger]

On 11/8/2016 at 7:34 AM, iacas said:

They (Dick's) might beef up their golf section now that major competitors are missing.

The traditional DSG / GG model had been to have a Dick's and a Galaxy in the same neighborhood. Dick's had a golf section, but Galaxy had the major full-line offerings. Then, Dick's fired all its in-house PGA pros in 2014. I heard some talk of Dick's really minimizing golf in its DSG stores.

St. Louis area (MO/IL)

As of now, Galaxy has a mid-size shop (right arrow) in Fairview Heights, IL. A Sports Authority shut down about a mile away. Latest plan calls for Dick's to open up in the old Sports Authority building, and embed a Galaxy operation within the DSG store. Supposedly the Fairview Galaxy lease payments are rather high, and the consolidated shift down the street could save $$ on floorspace payments.

Lease payments are a major factor in which stores close, or stay open. A Galaxy store in Brentwood (about 4 miles northeast of Golfsmith-GG shop) closed last year over lease renewal impasse.

The Chesterfield Valley Galaxy Superstore (left arrow) and the GolfSmith --> Galaxy transition store (center) round out the StL area mix.

[boogielicious]

I popped into the Golfsmith in Reading, MA and talked to the manager. They are staying. A couple of stores will close in east central MA because they are really too close to the Natick store. Interestingly, the Golf Galaxy in Burlington is staying too. 

He was encouraged. He said even though the media portrayed golf declining, equipment sales were up and rounds were up in the  area. 

[WUTiger]

8 hours ago, boogielicious said:

He was encouraged. He said even though the media portrayed golf declining, equipment sales were up and rounds were up in the  area. 

I came across a Fortune magazine story that said golf was experiencing a rebound financially, both in number of rounds and equipment sales. But, I can't remember the magnitude of the rebound. Will post the link if I can retrieve it.

[billchao]

I stopped at the Bridgewater Golfsmith yesterday and most of the stock in the store was still there, between 15-40% off, but most things were about 20%. Not enough to make me pull the trigger on anything yet but Golfpride MCC grips at 30% off was tempting. I want to get a new cart and bag but I'll wait and see what's available after they discount more heavily.