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Details on Industry Insight.
Dick's announced last week that it will acquire Chick's for $71 million in cash and debt. Chick's has become an important account for the industry and operates 15 stores in Southern California.
Dick's is headquartered in Pittsburgh and most of its 340 stores are east of the Mississippi.
Here are more details I learned from Dennis:
Jim Chick will stay in place at Chick's and continue to run the operation through June 2008. Jim has also agreed to be involved in an advisory role for another two years. Ultimately, Chick's stores will be converted to Dick's.
There are some categories in Dick's stores that are not as well developed at Chick's, including golf, hunting, fishing and camping. Chick's has more beach and skate goods. Dick's tailors its merchandise to meet the needs of core athletes and outdoor enthusiasts in each market. Dick's will tap into Jim Chick's knowledge of who the customer is and what that means to the assortment.
Chick's was attractive because it was a great way to enter the market. Chick's has good real estate, similar store sizes, and lots of experience in the market.
California has for some time been in Dick's growth plan, and in the company's long term business model. The Dick's nameplate will expand throughout California.
"Jim's experience in this marketplace and relationships with the brands are very important."