Dick’s Sporting Goods Expanding Lids Shop-in-Shop Concept to 100 Locations

Dick's Sporting Goods announced a partnership to expand Lids shops to 100 Dick’s stores nationwide, the company said in a press release on Monday. The collaboration is currently available in 46 stores across states such as California, Colorado, New York, and Texas. It’s expected to reach 100 stores by late summer 2026.

“Our athletes are increasingly looking for new ways to rep their favorite teams, their style and the latest trends,” said David Progar, senior vice president, licensed at Dick’s. “By partnering with Lids, a leader in licensed headwear, we’ll be able to offer them more choices to meet their needs for sport, lifestyle and fandom.”

Total Retail's Take: This announcement from Dick's and Lids signals several themes that bear watching for retailers:

1. The return of the shop-in-shop strategy: Retailers such as Dick's are working with best-in-class partners to enhance categories (in this case, licensed sports headwear) rather than managing every category internally. Similar shop-in-shop models are appearing across beauty, collectibles, electronics, and luxury. The goal for retailers is for shop-in-shop formats to yield higher sales per square foot within existing store footprints.
2. Targeting fan commerce is increasingly a winning strategy: Local consumers identify and connect with each other through sports teams, providing a market for licensed merchandise for local teams. Look at what is happening in New York right now with the Knicks.
3. Physical stores are centers for experiences, not just inventory: Dick's is a prime example of a retailer embracing this trend. The sporting goods retailer has invested heavily over the last several years on its House of Sport experiential stores, Field House formats, specialized in-store concepts, and expanded vendor partnerships.