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Merchandise update on Chick’s new owner

By Tiffany Montgomery
May 28, 2008 6:54 AM

I found some information in an earnings conference call transcript about Dick's Sporting Goods plans to integrate Chick's into its chain. Executives also briefly discussed how how action sports goods will fit in the converted stores.


Dick's, based in Pittsburgh, purchased Chick's 15 stores in November for $71 million in cash and debt assumption. Dick's operates 30 stores, mainly in East. The acquisition vaulted Dick's into the Southern California market.


Here's what Dick's Sporting Goods CFO Timothy Kullman said during the conference call with analysts last week.


"The transition is progressing quite well. We are in the process of converting one store to a Dicks Sporting Goods store and just test how this conversion is going to work how the customer is going to respond, so we are very pleased with that. Joe has got that working and we will be converting that sometime in this October, so we'll have a good test through holiday in next spring.


"As far as snow board and skiing snow board, we will continue to keep skiing in those Southern California stores and the lifestyle apparel of the beach brands -- we will continue with those beach brands in Southern California also.


"Where that square footage is going to come from is we are going to enter Southern California in the conversion of the Chick's Sporting Goods stores to our full marketed stores; we will be entering those markets with no fire alarm so the hunting side of the business - which there is not a tremendous amount of hunting in Southern California - we are going to be taking that square footage and reallocating that to the beach ski snow board aspect of the Chick's business."


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