Hibbett Sports SWOT & PESTLE Analysis

Strength

1. Hibbett targets low to mid-sized markets which allows the company to expand with relatively low operating costs and minimal competition: Hibbett Sports is a rapidly growing operator of sporting goods stores in small and mid-sized markets majorly concentrated in Southeast, Mid-Atlantic and lower Midwest regions of the United States. It targets markets with county populations within the range of 30,000 to 100,000. A typical Hibbett store is only 5,000 sq. ft. and are usually located in strip malls (75% approximately). The operating costs of small stores are less as compared to larger stores. Thus, the returns are impressive with low initial investment costs and high return on investment with more than 40%. With its focus on smaller markets, it can find better real estate locations than if it opened in major metropolitan areas. Its target market enables the company to achieve strategic advantages including expansion opportunities, comparatively low operating costs and a more limited competitive environment than generally faced in larger market.

2. Strong implementation and maintenance of information systems for all business strategies: The company uses information systems to maintain tight controls over inventory and operating costs and continually search for ways to improve efficiencies and customer experience. Strong information systems targeted at improving financial control, inventory control, merchandise planning, logistics, replenishment, cost management and product allocation are in place. These systems are designed with adequate flexibility in order to meet specific needs of each store. They are monitored 24 hours a day with the support of highly qualified and motivated third-party partners. The involvement of senior management in IS planning process ensures efficient implementation and maintenance. In early Fiscal 2021, HIBB consolidated the City Gear data center into its St. Louis hosted facility, accomplishing the alignment of controls over data. As per its Annual Report 2020, the management believes that their current systems and practice of implementing regular updates will continue to support current needs and future growth.

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Weakness

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Opportunity

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Threat

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Political

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Economic

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Social

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Technological

1. The e-commerce platform was built recently which turned into digital victory that helped in enhancing sales: The launch of Hibbett’s E-commerce site in Fiscal 2018 achieved a monumental goal with great success. The complete digital transformation with the help of top-notch technology and motivated employees turned into a digital victory for the company. The sales of the company increased through its online platforms with varied features over the years. The E-- commerce sales grew by 50.7% and represented 13.2% of total net sales for the third quarter of Fiscal 2021 compared to 10.5% in the prior year third quarter. The raffle process on mobile apps for acquiring the latest coveted launch shoes is an attraction point for customers. The digital integration proved to boost the company’s sales and increase its EPS to great extents outweighing the costs. Even during the times of Covid-19 when the stores were closed, the company managed to make its sales through its online platform.

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Legal

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Environmental

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