Hibbett Sports Inc Case Analysis

Hibbett Sports Inc. was originally named Dixie Supply Company and was founded in 1945 in Florence, Alabama. The company specialized in marine and small aircraft, but eventually found a position of dominance in sporting goods by 1960 (Hibbett, 2016). The company mission statement is, “At Hibbett Sports, we make it easy for you to have an edge up on the competition when it comes to your style. Whether it’s the brands we keep on our shelves or the people who work in our stores, we are here to help you reach your next level of play. You’ll get the latest products first and exclusive items that are harder to find. If you want to put your game in the right hands, you’ve come to the right place.” (Hibbett, 2016)
Hibbett Sports Inc. has since grown exponentially since 1960 and now operates a total of 1,047
These locations are approximately 5,000 square feet. Hibbett Sports Inc. refers to this as a “small-box strategy.” Jeffrey Rosenthal, CEO and President, claims “This approach allows us to be nimble as we enter smaller areas that cannot effectively support big-box competition” (Rosenthal, 2016). Approximately 82% of stores are located in strip malls. The other 18% of stores are in enclosed malls. The location of Hibbett Sports stores are generally influenced by a Wal-Mart store. Hibbett Sports Inc. targets markets with a population range of 25,000 to 75,000. Hibbett Sports Inc. prides itself on a strong regional focus which enables notable cost benefits such as lower corporate expenses, reduced distribution costs, and increased economies of scale from marketing activities. Cost benefits establish credibility amongst customers in these markets. This regional focus is also what differentiates Hibbett Sports from national competition. The company’s ability to merchandise to a smaller community and specialize in local sporting interests is distinguishable in the sporting goods industry. (Hibbett,