Sport Chalet, a specialty sporting goods retailer, has selected investment banking firm Cappello Capital Corp. as its exclusive financial advisor.
The retailer hired Cappello to assist in executing a set of previously announced strategic initiatives, which include the implementation of a new store format and further investment in its growing online presence.
“While we lack the capital of some of our larger competitors, over the past year we have taken definitive steps to position Sport Chalet for future growth,” said Craig Levra, Chairman and CEO of Sport Chalet. “We believe that in collaboration with the right partner, we can more expeditiously implement our growth plans across all channels and create shareholder value. We selected Cappello Capital Corp. to help us identify options to accelerate growth and realize the untapped value of our company and brand.”
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During June 2013, Sport Chalet unveiled a “next generation store format” in downtown Los Angeles. At 27,000 sq. ft., the location offers a more flexible floor plan to empower the retailer to reset fixtures and displays according to customer trends. Due to consumers’ positive response, Sport Chalet has announced plans to extend the store format to other locations, according to a company press release.
In addition to aggressive brick-and-mortar goals, Sport Chalet is focusing on augmenting online sales. At the end of Q2 2013, the retailer announced that year-over-year online sales increased 38%. As a result, Sport Chalet will implement new services, such as a vendor direct-to-consumer drop ship. The company also plans to increase investments in data collection and analysis to personalize marketing campaigns and merchandise, as well as offer compelling mobile and local initiatives to strengthen brand awareness.
