The Sports Authority's President and CEO Jack Smith is the
interview in the current SPORTING GOODS BUSINESS. TSA "has well
over 100 stores," is on target to hit $1B in business and "has
won over all major brands in the industry, including Nike and
Starter." When asked about "internal cannibalization," whereby
TSA opens additional stores in a market and takes away existing
business, Smith said some retailers are "proving that theory is
very successful. Home Depot is a tremendous example of
cannibalizing their own stores, but gaining market share." Smith
doesn't foresee TSA following SportsTown and their "store-within-
a-store concept" with an Athlete's Foot within their stores.
Smith called the "footwear margins" the "strength" of his
industry, adding, "To me it seems very difficult to give that
away." TSA will expand with eight stores in Toronto over the
next two years, and Smith says their Japanese "venture is well on
its way." Smith said Japan will be a joint venture, where they
will have majority ownership, but are "entertaining licensing ...
in other words, a franchise" (Andrew Gaffney, SPORTING GOODS
BUSINESS, 6/95 issue).
