In the aftermath of the unthinkable tragedies associated with gun violence in schools, people seek solutions and new ideas for reducing their likelihood. Dick’s Sporting Goods decided that it could be part of this solution; following the Parkland, Fla., high school shooting, it announced in early 2018 that it would no longer be selling any assault-style guns and would limit all gun sales to people older than 21 years of age.
The move was driven by the ethical beliefs of the company’s CEO and board of directors, who resolved to “take a stand.” In a unanimous vote, the board agreed to institute these changes, even while it recognized that the moves could have damaging implications for the sporting good retailer’s financial health. In particular, guns and their accessibility represent controversial topics, and the retailer’s attempt to address the problem of gun violence accordingly created some new challenges for it.
As the board had anticipated, sales at Dick’s dropped by about 4 percent after its announcement. In addition to the loss of sales of guns, some consumers regarded its position as contrary to their beliefs and promised to stop shopping there. On the employee side, about 60 employees quit in protest of the new policy, though they account for a very small percentage of the 40,000 or so people who work for Dick’s.
But even as sales declined, Dick’s noticed that its profits had risen. Much of the shift resulted because it could replace guns with higher margin items in its stores. By replacing assault rifles with licensed apparel and kayaks for example, it enjoyed a jump in profits. Thus Dick’s even is experimenting with removing guns from its stores altogether, noting that a decision made on the basis of a sense of social responsibility also might prove to be beneficial from a financial and operational standpoint.
Although Dick’s was the first and most vocal retailer to take these steps, it was not alone. Walmart also eliminated assault weapons and imposed age limits, though without as much public fanfare. Accordingly, its sales have not been affected, but neither have its profit margins.

Discussion Question:

1. What is Dick’s gun policy?
2. How has this policy affects sales at Dick’s? At Walmart?
3. What do you think of Dick’s gun policy?

Source: Sarah Nassauer, The Wall Street Journal, December 4, 2018