Sportmart and The Sports Authority embroiled in Chi Town sports war - retailers compete in Chicago, Illinois

Discount Store News, August 21, 1995 by Arthur Goldgaber

CHICAGO -- Not far from Capone's Chicago museum, a new turf battle has begun that may rival Capone's own fight with the Moran gang. Now the combatants are two sports retailer category killers-sportmart and The Sports Authority--with stores located just a few blocks from each other in Chicago's River North district.

Both retailers count on the district's high pedestrian traffic from numerous tourist sights to attract customers. The area is now a tourist mecca with several night spots including the Hard Rock Cafe, Michael Jordan's restaurant and sports bar, Planet Hollywood, Ed Debevics '50s-style diner and many bars and restaurants all located within walking distance of the two stores. As The Sports Authority buyer Bob Taminski summed it up, "This is the place to be in Chicago."

And Sportmart would not dispute that statement. Its location at 620 N. LaSalle with 68,000 sq. ft. of retail space is actually a much older eight-story building that once belonged to the MC Mages sports chain. Sportmart bought the store in February, 1994, but just recently completed a large renovation project that included completely updating the interior, adding new departments such as a rugged apparel section, developing a color-coded signage scheme for each floor and placing large trendy neon signs on the windows to attract tourists. The chain also benefits from the store's famous Walk of Fame, which features hand prints of Chicago sports players--a la Mann's Chinese Theater in Hollywood--on the side of the building and inside the store.

The competing The Sports Authority store a few blocks east on Ontario at 630 N. Rush St., which opened late last year, is a 40,000-sq.-ft. building. It offers a similar selection of general sports merchandise and also tries to appeal to the tourist trade. Nationally, the Fort Lauderdale-based The Sports Authority chain carries a bigger punch, with 110 stores and 1994 sales of $839 million. The challenger is no 90-lb. weakling, however. Wheeling, Ill.-based Sportmart projects to have 71 stores by January 1996 and 1994 sales reached $424 million.

"I like to describe the competition this way," said The Sports Authority store manager David Pace. "We both have the same merchandise on the shelf. The store that hands the product to the customer is the one that wins, and you have to win with superior customer service." Pace pointed out that the store does try to cater to the tourist and carries a larger selection of licensed sports apparel featuring the local Chicago teams than a typical The Sports Authority store.

Pace also said that the Nike Town store--located nearby on Michigan Avenue--is not a direct competitor, but its more limited high-end selection really complements his sales. "I view it more as a museum," he says. "A tourist may buy tennis shoes over there [the Nike store], but the sales person may send the tourist here for a racket and other accessories."

A few blocks away at Sportmart, store manager John Giovanini was quite proud of his store as he led a visitor on a tour a few minutes before the store's late closing time of 9:30 p.m. Even at this late hour, the main floor was crowded with tourists from other U.S. cities, Great Britain and Japan making their last-minute purchases. Giovanini, who said his store is "tourist driven," points to several boxes ready for shipping next to the register and said that they represent a $9,800 purchase of autographed Michael Jordan and Shawn Kemp jerseys by a Japanese tourist.

As Giovanini walked up to the second and third floor, a visitor feels like he is viewing many specialized sports stores in one building. For example, the store has 7,500 sq. ft. devoted just to in-line and roller hockey skates and accessories, 10,000 sq. ft. to sports apparel and half a floor, to footwear. Giovanini says that his store" is unique and does not have a "cookie cutter" look.

These two stores are both ringing up a large amount of sales now in the summer as thousands of tourists visit Chicago. But will the stores survive the city's brutal winters when only a few hearty souls dare to venture outdoors? Giovanini does not worry about the winter because his store stocks a wide selection of skiing equipment, which attracts a Chicago-area clientele.

The Sports Authority's Pace seemed a bit more concerned about a winter slowdown, but hopes conventiongoers will help buoy sales until spring when tourist season begins again.

If all else fails, Pace can always walk over to the Capone Museum for inspiration, or for more proactive competitive strategies.