Analysts: Dick’s Could Take Over 80-180 Sports Authority Stores

Image courtesy of Mike Mozart

How many sporting goods stores does this country really need? Two outdoors-oriented chains are reportedly considering a merger, and two companies in the sector have filed for bankruptcy protection in the last few months. Sports Chalet is shutting down, and Sports Authority stores are all closing or for sale: the buyers could be liquidators that would simply sell everything off and close down. According to a recent report by some investment analysts, though, market leader Dick’s may take over some of those stores.

The auction for the chain’s remaining stores will take place next Monday, May 16, and the stock analysts believe that the main bidder will be Dick’s Sporting Goods. They came up with the figure of 80 to 180 by looking at current Sports Authority locations. If there wasn’t a current Dick’s or Academy Sports store open within 5 miles, they considered it a good target for purchase.

Academy Sports is the next-biggest sports retailer after Dick’s, and may also bid on some of the Sports Authority stores. However, the analysts at Canaccord believe that Dick’s is in a stronger position to take over stores scattered across the country, while Academy’s stores are concentrated in the Midwest and South.

It’s possible that a liquidator could win some or all of the stores, too, which would mean they would simply shut down.

Dick’s Sporting Goods could get 180 stores out of Sports Authority auction: Canaccord [Marketwatch]