Marketing and sales are one of the most important matters for every company no matter what they sell because how will they make money if they don’t sell, Right?
This was the same dilemma Dick’s Sporting Goods were going through when they realized that their guns and arms are not selling in a few stores so they came up with a plan to check if it boosts up the sales.
The company noticed that guns, forearms, and hunting accessories were the things that were getting no or very less response in terms of sales. This was causing a huge loss to the growth of the company.
The prices of shares of the company were also being affected by the same. So to rise up on the level of growth, the company came up with a strategy and decided to test run it first in 10 stores.
The company withdrew their arms and guns from almost 10 stores along with hunting accessories in order to test if the plan works. Well, the strategy worked.
Rather than keeping hunting accessories and guns in the store, the company decided to replace them with sports goods that have high margins and helps in the growth of the company.
Well, the plan worked and boosted up the sale as well as the profits for the company. Working with the same results, the company decided to apply the same strategy in 125 stores altogether in order to raise the graph of sales.
This has caused a fall in the price of their shares of but the CEO says they are only working towards progress and it will be a long term investment.
He also said that they are planning to apply the same strategy to more stores next year. According to the reports, 720 more stores will be covered under the same plan by next year.
CEO said it is a multi-year initiative and thus will take a few years to bring the change.
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