Dick's Prepares Bid for Golfsmith's US Stores
Dick's Sporting Good's is rumored to be making a bid for Golfsmith International Holdings. Reuters reports the last-minute bid is challenging retail competitor Worldwide Golf Shops. Golfsmith previously filed for bankruptcy earlier this year due to competition in a crowded retail space from the likes of Amazon.com and Wal-Mart. A drop in interest of the sport over the last few years also attributed to slumping sales. The company with the highest bid will be announced Wednesday after the auction.
Total Retail's Take: Dick's Sporting Goods is trying to add another piece to its growing empire, buying up its fallen competitors. Dick's has positioned itself as the leading company in the challenging sporting goods space, helped in part by its acquisition of now-defunct Sports Authority's name, intellectual property assets and 31 store leases. Dick's operates its own specialty golf shops, Golf Galaxy, so its plans for Golfsmith remain unclear.