DICK’S Sporting Goods Takes In-House Approach To Software

DICK’S Sporting Goods Takes Software In-House

Instead of depending on outside vendors, DICK’S Sporting Goods is hoping to gain a competitive advantage by building its software in-house. The retailer’s Chief Technology Officer Paul Gaffney is heading up the work, The Wall Street Journal reported.

After creating new inventory tracking software, Gaffney’s staff will finish moving to in-house software for its online efforts. Items on the agenda include shipping estimates and how items are featured online, among other areas of focus. The team behind the inventory software development has a “self-imposed goal” to take in a minimum of 10 times its cost in yearly revenue, per the report.

Since setting that goal in October, the team has progressed about 50 percent toward achieving it. Gaffney told the paper that he says to his team, “Don’t get excited about shipping a feature – get excited about when the feature turns into revenue and turns into profit.” As WSJ noted, DICK’S is one of many brick-and-mortar retailers mulling in-house software creation and bolstering their teams for technology.

The news comes after it was reported in March that DICK’S revealed its net income in the fourth quarter and for the year fell short, even though its eCommerce sales grew. Net income was $102.6 million for Q4, compared to $116 million the year before. At the same time, net income for the year dropped from $323.4 million in 2017 to $319.9 million. However, eCommerce sales for the final quarter of 2018 increased by approximately 17 percent.

DICK’S Sporting Goods President Lauren R. Hobart said at the time, “In 2019, we are focused on enhancing our athletes’ experience in our stores, improving our eCommerce fulfillment capabilities and elevating our technology talent and capabilities. This is an exciting time for our company as we remain focused on building the best omnichannel experience in sporting goods.”


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