Dick’s Sporting Goods Now Owns Golfsmith
We all know Golfsmith recently waived the white flag and declared bankruptcy in hopes to find a buyer. Well today, that acquisition happened with Dick's Sporting Goods purchasing Golfsmith for $70 million. Kind of sad that Golfsmith as a whole is only worth $70 million.
Dick's Sporting Goods says that they plan on keeping about 30 of the 109 current Golfsmith stores open. That means, odds are, if you live in an under whelming city or town, your local Golfsmith is probably on it's last leg. Personally, I enjoy popping into my local Golfsmith. Are the prices low? No. Are the sales associates incompetent? Yes. But I always enjoy the vibes of being around other golf nuts. Additionally, I'm a big fan of their nonchalant club testing stations. I can waltz right in and take as many hacks as I please with the new Nike Vapor 2.0 no questions asked.
Dick's Sporting Goods has officially become the Walmart of sporting goods. Dick's already owns the rights to Golf Galaxy and recently acquired Sports Authority as well. Might as well call them Dick's Sporting GODS at this point. There could be a silver lining here. I'm far from an economist, but now that Dick's clearly owns the retail golf space, maybe their margins will end of being better since their quantity of golf goods sold should now increase. Better margins means lower prices? Is that how margins work? Better question, how does business work?
As long as I don't have to whore myself out to a Dick's Sporting Goods sales associate in order to test out the latest Titleist diver, this acquisition of Golfsmith shouldn't be a big deal. Get your Dick's Scorecard ready