Store-within-a-store concept blends
Nevada Bob's with Sport Chek

By Rick Drennan

When a pro golfer's game falls on hard times, many consult with their teacher, practice hard to improve performance, and refocus for the future. The results are usually quite good.

It's the same in the business world. With challenging economic times, companies have to be bold and innovative, and focus on upping performance.

The Forzani Group Ltd. (FGL) – owners of Nevada Bob's and Sport Chek – is doing just that, says Tom Quinn, president and COO, corporate and franchise retail. Canada's largest national retailer of sporting goods, not only assures its golfing customers that Nevada Bob's is very much open for business, but that it and Sport Chek might just be revolutionizing the buying habits of everyday Canadians.

Bigger isn't necessarily better, notes Quinn, who will oversee the redeployment of Nevada Bob's outlets into 2,500 sq. ft. "concept stores" within Sport Chek. Forzani did not want to go the Golf Town route with more ‘big box stores', so about 18 months ago, the company decided to "test market" the store-within-a-store concept.

There was a "significant lift" in clothing, and the stores were getting "4 to 5 times the increase in sales," said Quinn. There are now 26 Nevada Bob's Golf stores within Sport Chek – and that list is growing quickly. If lease agreements allow it, the outdoor signs from Nevada Bob's stores will be moved indoors at many Sport Chek locations.

There are currently 14 corporate Nevada Bob's Golf stores. If they are not doing well, they will be closed, said Quinn, matter of factly. FGL's banners – which include Athletes World, Hockey Experts, Coast Mountain Sports and Sport Mart, among others – are strategically customized to serve the needs of a wide range of demographic groups with specific product and sport preferences, at varying price points.

The blending of Nevada Bob's into Sport Chek fits today's economic realities, says Quinn, who believes a company has to jockey the needs of its customers with those of its shareholders.

The Forzani Group employs over 14,000 people in communities across Canada and trades on the Toronto Stock Exchange under the symbol FGL.

Quinn, named president in 2008, is a natural candidate to drive this change with over 30 years experience in retail, and a proven track record building a highly successful franchise business. After a decade of growth and after the opening of numerous Big Box stores in Canada, Nevada Bob's moved to reposition itself thanks to a drop in prices for its product offerings.
"It just makes good business sense", says Quinn.

It's "hard to maintain the infrastructure and get a return on your investment," he adds. "We have to look after our shareholders." Overhead costs badly impact the bottom line, and huge retail outlets, the so-called "big box outlets," are expensive to operate.

Nevada Bob's will still be a one-stop golf shopping outlet, and Forzani's huge buying power means that customers will have access to all the brand name equipment golfers know – with a variety of price points for everyone from the burgeoning new golfer to the pro.

The Nevada Bob's non-hassle shopping experience will only be enhanced with this realignment, and the same expert staff will be on hand to help golfers find everything from hats to shoes to clubs, and everything in between.

Earlier this year, a story in the Toronto Star entitled, "Big Trouble for big-box stores," pointed out "as the economy grinds to a halt, people are reassessing their priorities." One industry expert said this transfers into customers "shopping smaller" – including the size of stores they want to visit.

A total of 10 Nevada Bob's stores are closing and the real estate will be converted into another type of store or banner. The staff and goods from these stores will transfer over to a Sport Chek locale. Quinn insists that the staff will remain the same – qualified and knowledgeable about all aspects of golf. The company is even looking at hiring some golf professionals who are not working throughout the winter months.

Four or five freestanding Nevada Bob's outlets will remain, scattered across the country, but the real goal, says Quinn, is to have 38 Nevada Bob's/Sport Chek stores by the spring of 2010. That number could increase to 65 stores by next fall.

Eventually, Nevada Bob's hopes to have 130 concept stores in all Sport Chek stores and in 15 Sports Experts outlets. Converting to the concept stores makes good business sense and provides the right return for shareholders," says Quinn.

09/09