Once a powerhouse sports retailer operating at 463 locations nationwide, Sports Authority filed for Chapter 11 bankruptcy in 2016. Though shaken by the news, Dick's Sporting Goods is likely set to gain from the demise of Sports Authority. Along with encroaching competition from other big box stores, showrooming undoubtedly played a role in the downfall of Sports Authority. To top that all off, questionable decisions from Sports Authority’s corporate office ultimately did the company no favors either. From the outside Sports Authority and Dick’s Sporting goods don’t seem to differ much; two big box stores of comparable size focused on sporting goods and outdoor accessories. It is only once we look into the inner workings of these companies do we realize the stark contrast between the two. According to an article on RetailDive, “One of Sports Authority’s biggest problems was unquestionably its debt” (Ewen, 2016). It was this debt and Dick’s Sporting Goods growing sales figures that set the tone for subsequent bankruptcy. Dick’s Sporting Goods was preparing for hardships, Dick’s was also keeping a conservative hand on its finances while Sports Authority was amassing over 1 billion dollars in debt renovating stores and investing in E-commerce (Ewen, 2016). …show more content…
In the century of Amazon, operating a brick and mortar franchise is a dangerous game. For one, Amazon can adjust prices infinitely faster and keep customer attention longer, being an online retailer. Second, consumers are far more comfortable shopping at home where any item they desire is a few clicks away. All brick and mortar stores should pay close attention to the closure of Sports Authority as this may be foreshadowing dark times for companies that can’t keep