The news: Dick’s Sporting Goods is broadening its merchandising strategy with more flexible store formats.

The retailer is partnering with Lids to roll out shop-in-shops. The concept, currently in 46 locations, is expected to expand to more than 100 stores by late summer. The spaces feature licensed and lifestyle headwear, with Dick’s positioning the concept as a way to broaden its merchandise assortment. Lids is also helping train Dick’s associates on product knowledge and visual merchandising.

Dick’s is also experimenting with rotating pop-ups for its private-label brands, per Retail Dive. The first, which opened May 14 in the Hamptons and runs through mid-October, currently highlights its golf-focused Walter Hagen and Maxfli lines. It will transition to coastal apparel from Calia in July, then shift to back-to-school offerings centered on the DSG private label from late August through October.

Why it matters: Dick’s momentum continues to build. The retailer delivered better-than-expected Q1 results and raised the low end of its 2026 comp sales outlook for both its core business and Foot Locker. The core Dick’s banner posted 6% comparable sales growth in the quarter ended May 2, driven by gains in both traffic and average ticket, building on 4.5% growth last year and 5.3% in 2024.

That performance underscores the strength of its merchandising strategy. Its large-format House of Sport and midsize Field House stores are key growth drivers, giving consumers more opportunities to touch, test, and engage with products, while also providing brands like Vuori and Gymshark space to tell their stories in a more immersive way.

Implications for retailers and brands: The cookie-cutter, one-size-fits-all approach to retail is over. With consumers having more options than ever, retailers need to tailor their assortments and experiences to the specific markets they serve.

At the same time, stores are evolving beyond simply driving sales. They are increasingly becoming platforms for brands and private labels to tell their stories and deepen connections with consumers. Concepts like shop-in-shops and rotating pop-ups give retailers the flexibility to keep assortments fresh, test new ideas, and drive repeat visits.

Those that combine localized merchandising with dynamic, experience-driven formats will be more likely to capture a larger share of consumer attention and spend.