Warren Buffett once said that it's wise for investors “to be fearful when others are greedy and to be greedy only when others are fearful.

Mark Mobius, Chairman of Mobius Emerging Opportunities Fund also arrived at a similar conclusion, saying;

”... another truism of successful investing; being different. If you invest where everyone else feels comfortable, you may not be investing in the right place. In investing, we believe sometimes being unpopular can be the key to success, and the right time to invest can be any time at all.”

What both men have come to conclude is that in investing, as in business, the right move isn’t always what everyone else is doing. Sometimes, success lies in having the courage to go against the grain, and one person who does this so well is Ed Stack, executive chairman of DICK’S Sporting Goods.

At a time when brick-and-mortar stores are shutting down en masse while e-commerce giants like Amazon are thriving and businesses are trooping online to establish their presence, Stack is doing the exact opposite, building Mega Stores across the US.

His strategy might seem uninformed at first, but you find out that in 2023, the company made 13.3 billion dollars in sales. Not only is the revenue growing, but the stocks are doing quite well too.

The question now is, what makes DICK'S different from other stores that have closed up shop and declared bankruptcy or moved online? Before we dive into that, here’s a little background on the company.

Ed Stack has always been a go-getter

Ed Stack’s connection to DICK’S began at age 13 when he started working for the small business his father had founded. Their strained father-son relationship made working together difficult, and Stack confessed that he “hated every minute of it.”

Everything changed when Stack was forced to drop out of college to manage the business after his father’s health declined. This marked the beginning of a long battle between the two over the company’s future.

Stack’s father, haunted by a past near bankruptcy, was deeply opposed to expanding beyond their single store. In contrast, Stack had a vision for growth. When his father suggested selling the business, Stack along with his siblings, took the opportunity to buy him out, and gained full control.

Learning Through Challenges

With newfound autonomy, Stack immediately began transforming the company. He expanded its inventory, shifting focus from solely hunting and fishing gear to include a broad range of sporting goods. This diversification led to partnerships with global brands like Adidas and Nike.

However, early on, his rapid expansion model—modeled after Walmart—nearly bankrupted the business. Cash flow dried up, forcing Stack to pause store openings for 18 months. He also secured a $140 million loan from investors, though this meant temporarily losing majority control of the company. Undeterred, he later bought back the shares, regaining full ownership and valuable experience.

In 2018, the rise of e-commerce created another existential challenge. Competitors like Amazon and Walmart were dominating, while brands that once partnered with DICK’S began selling directly to customers or cutting deals with discount retailers. Instead of retreating to the digital space, Stack developed a bold and seemingly absurd strategy: build bigger, more experiential stores.

Why Build Mega-Stores in the E-Commerce Era?

“If someone opened the store that we’re going to design across the street from us, we’d be out of business,” Stack admitted. His decision relied on the fact that customers still crave the tactile experience of shopping in person.

Stack envisioned DICK’S as more than a retail destination—it would become a one-stop shop for sports enthusiasts. The new 150,000-square-foot stores feature everything an athlete could need, from golf bays and outdoor sports fields to in-house repair technicians and an unparalleled selection of gear and apparel.

These stores also serve as fulfillment centers for the company’s hybrid model, allowing customers to buy online and pick up their purchases in person. This combination of physical and digital commerce has doubled the company’s revenue since 2019, proving the model’s success.

Lessons from Ed Stack’s Playbook

Here are four key takeaways from Stack’s business strategy:

1. Go Bigger and Diversify

Diversification reduces risk and builds resilience. By expanding beyond its original niche of hunting and fishing, DICK’S has tapped into a broader audience. The mega-stores exemplify this approach, offering not just products but also experiences, such as interactive sports spaces.

2. Reinvent the Wheel

“What we’ve always been concerned about is waking up one day and having a tired old chain,” Stack said. Businesses must constantly innovate to stay relevant, whether through fresh designs, new product lines, or novel customer experiences.

3. Adapt and Thrive

Embracing a hybrid business model has been key to DICK’S success. By integrating physical stores with e-commerce, the company has balanced the convenience of online shopping with the sensory appeal of in-person experiences.

4. Stay Competitive

DICK’S fosters what CEO Lauren Hobart calls “productive paranoia.” The company continuously anticipates industry shifts, ensuring it evolves ahead of competitors. This proactive mindset has enabled them to adapt quickly in a fast-changing retail landscape.

Final Thoughts

Ed Stack’s journey offers a masterclass in bold leadership and strategic innovation. By challenging conventional wisdom and taking calculated risks, he has transformed DICK’S Sporting Goods into a billion-dollar enterprise.

His story is a testament to the power of resilience, vision, and the willingness to go against the grain. For business leaders, entrepreneurs, and dreamers alike, Stack’s philosophy is clear: think big, embrace change, and never stop striving for excellence.