Dick’s Lifts Moosejaw From Walmart
In a strategic move to strengthen its foothold in the lucrative outdoor retail market, Dick’s Sporting Goods has acquired Moosejaw from Walmart, according to a recent Forbes article. The acquisition is seen as a significant opportunity for Dick's to enhance its product offerings and consumer engagement in this specialized market segment.
Carol Spieckerman, a key voice in retail analysis and president of Spieckerman Retail, provided insights into the transaction during a Retail Wire discussion. Spieckerman notes that Walmart’s divestiture of Moosejaw, along with other acquisitions from the Marc Lore era, marks a strategic realignment for the retail giant. For Dick's Sporting Goods, however, the acquisition of Moosejaw is not just about obtaining another brand, but about integrating a brand with a robust online presence and a diverse portfolio that can significantly enhance Dick’s existing operations. Spieckerman highlighted the complementary nature of the acquisition, with Moosejaw’s established e-commerce platform and physical stores providing a strong base for expansion under Dick’s flagship presence and its newer outdoor division, Public Lands.
The outdoor specialty market, where Moosejaw is a seasoned player, has shown healthy growth, with a 7% increase to $7.9 billion in the U.S. for the year ending November 2022, according to The NPD Group. This underscores the potential for Dick’s to leverage Moosejaw’s strengths to tap into this expanding market.
Moosejaw, founded in 1992 and acquired by Walmart in 2017, brings to Dick’s a solid operational base, including an e-commerce site and 13 brick-and-mortar stores across several states. Eoin Comerford, the CEO of Moosejaw, is set to report to Todd Spaletto, the president of Public Lands and senior vice president at Dick’s Sporting Goods. This strategic alignment within Dick’s management structure is poised to streamline the integration and expansion of the Moosejaw brand within Dick’s broader business strategy.
The article also touches on the broader implications of the acquisition for the retail industry. Experts suggest that the Moosejaw deal is a significant strategic fit for Dick's, positioning it to better serve outdoor enthusiasts through an enriched product assortment and enhanced retail experience that could rival specialty retailers like REI and Backcountry.
Dick's Sporting Goods' acquisition of Moosejaw represents a calculated expansion into the outdoor retail market, capitalizing on Moosejaw’s established brand and operational strengths to enhance Dick's market position. The deal, set to close shortly, is expected to bring synergistic benefits to Dick’s, helping it to address the needs of a diverse outdoor enthusiast customer base more effectively.
