Dick’s Sporting Goods Expands House of Sport—Will Experiential Retail Win?

You walk into a store, intending to buy a pair of sneakers. But before you know it, you’re climbing a rock wall, testing your golf swing, and skating on an indoor ice rink. You end up staying longer than expected, and by the time you leave, you’ve spent more than you originally planned.

This is exactly what Dick’s Sporting Goods is trying to achieve with its House of Sport stores—transforming retail into an immersive sports experience. Instead of simply selling products, Dick’s is building an environment where customers can try, play, and interact with the equipment before they buy. But will this approach redefine retail, or is it just an expensive marketing experiment?

Dick’s has invested heavily in this concept. Each House of Sport location costs $15.5 million more to build than a regular store. While the first-year revenue is projected at $35 million, long-term profitability remains uncertain. Compounding this concern, the sporting goods industry has seen a 3% decline in sales year-over-year. If consumer spending tightens further, will customers still prioritize in-store experiences over the convenience of online shopping?

The strategy employed by Dick’s isn’t entirely new—retailers across various industries have been pivoting toward experience-based shopping to attract and retain customers. Rather than viewing stores as mere transaction points, brands are increasingly leveraging their physical locations to provide interactive and memorable experiences.

Lululemon has been a prime example of this shift. Instead of simply selling yoga apparel, the company has transformed its flagship stores into community fitness hubs. Many locations now feature in-store yoga studios where customers can attend yoga, meditation, and high-intensity training classes. Lululemon doesn’t just want to sell you a pair of leggings; they want you to live their brand’s lifestyle. By immersing customers in a fitness-focused environment, they strengthen brand loyalty and increase the likelihood of repeat purchases. The company has even introduced membership programs, where subscribers gain exclusive access to fitness classes, product discounts, and early releases. By integrating these elements, Lululemon has created a recurring revenue model that extends beyond traditional retail transactions.

Apple has also mastered the art of experiential retail. Unlike traditional electronics stores where products are locked behind glass cases, Apple Stores encourage customers to freely explore and engage with devices. Every product is on display for customers to test, whether it’s the latest iPhone, MacBook, or iPad. More importantly, Apple has eliminated traditional checkout counters, replacing them with mobile payment systems that allow seamless transactions anywhere in the store.

Beyond selling devices, Apple has turned its stores into educational hubs. Programs like "Today at Apple" offer free sessions where customers can learn photography techniques, digital art skills, coding fundamentals, and even music production using Apple products. This keeps customers engaged, strengthens their connection to the Apple ecosystem, and ultimately boosts product adoption and sales.

Now, Dick’s Sporting Goods is applying this experiential retail strategy to the sporting goods industry. The question is whether this model will succeed in the long run. Unlike Lululemon or Apple, which offer brand-specific experiences, House of Sport caters to a wide range of sports and activities, making the execution and operational costs significantly more complex.

Retail, as an industry, is splitting into two distinct approaches: bigger, experience-driven stores or smaller, cost-efficient models. While Dick’s is betting on the former, brands like Macy’s and CVS are opting for the latter, downsizing locations to cut costs and improve efficiency.

If consumer preferences continue shifting toward smaller, more convenient retail formats, will these large-format experience stores become a financial liability rather than an asset?

Another key factor to consider is the future of shopping malls. House of Sport stores are strategically opening in former Macy’s locations, repurposing abandoned department store spaces. This raises a broader question: Are malls transforming from traditional retail hubs into entertainment-driven spaces? If more brands follow this path, we could see malls evolving into brand experience centers rather than just shopping destinations.

Yet, challenges remain. Can Dick’s Sporting Goods sustain high foot traffic to justify the costs of maintaining these large stores? If the economy weakens further, will consumers still prioritize experiential shopping over the affordability and convenience of e-commerce? If this model proves successful, will competitors flood the market with similar experience-driven stores, diminishing Dick’s competitive edge?

For consumers, the question is simple: Would you visit a store for the experience rather than simply buying online?

For investors, the question is even more pressing: Is House of Sport a glimpse into the future of retail, or is it an expensive gamble that could backfire?

Experiential retail is an exciting concept, but is it sustainable? Share your thoughts below!