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Faced with slumping same-store sales and a shift in consumer demands, Galyan's Trading Co. Inc. faces a local challenge that may be a microcosm of the retail war it is embroiled in nationally.
Pittsburgh-based Dick's Sporting Goods Inc. will open stores in Avon, Greenwood and Castleton this spring, and officers of locally based Galyan's see the move as a direct shot across the bow.
"We do find it curious that Dick's wants to come to Indianapolis when there are many other markets they could go into and be successful," said Ed Whitehead, Galyan's senior
vice president of marketing. "Dick's has been aggravated ever since we went into Rochester, [N.Y in 2001] and Buffalo, [N.Y in 2000]."
Dick's Vice President of Finance Jeff Hennion scoffs at the notion that his company's move into central Indiana is personal.
"It's a fantastic market," Hennion said. "And we see a lot of potential there. We know we can double the size of the company in the eastern half of the country. We're looking for cities that match demographically with our stores' target customers. And we want to open stores as quickly as we can."
That strategy, said Bob McGee, editor of Sporting Goods Intelligence, a West Chester, Pa.-based trade publication, could put immense
pressure on Galyan's.
Last May, Dick's reported an annual expenditure of $42.6 million on advertising company-wide. Industry analysts expect to see a marketing blitz in central Indiana when the three stores open.
"The sporting goods industry is facing a shakeout and I think you'll see these players turn up the marketing considerably," McGee said. "I think you'll get a...