A 65-foot Ferris wheel spins slowly in the distance. Upstairs, there’s a toy shop, bowling lanes, and an arcade. At first glance, it’s an entertainment complex — but one hidden within the sporting goods retailer Scheels.
Founded in 1902 as a general merchandise store, Scheels evolved into hardware locations before selling athletic gear in 1972. Today, it calls itself a sporting goods retailer, but that undersells its breadth and in-store experience.
“The best kept secret in retail is Scheels,” Matt Powell, senior adviser with BCE Consulting, told Retail Dive.
Scheels keeps a low profile. When approached for an interview, the company declined, citing its private, employee-owned status.
A unique shopping experience
A visit to a Scheels store reveals much about its strategy.
The hunting department, for example, offers apparel, bows, and certified technicians. Archery lanes let shoppers test equipment before buying.
This theme continues throughout the store. A basketball section features a mock hardwood floor with multiple hoops, while the baseball department has a batting simulator. Services like skate sharpening and bike tune-ups are also available.
“When they do something, they go all in,” Powell said.
Beyond core categories, Scheels offers a “toyland” with Lego, board games, and plushies, alongside a candy shop where shoppers assemble their own bags.
The store also includes a cafe, bowling lanes, and an arcade. “I think they really discovered the power of entertainment,” Powell said, noting that customers often travel hours to visit.
In an era of online shopping, Scheels offers a distinctly physical experience. While online purchases are possible, the in-store experience engages the senses. Commercial real estate firm JLL found in a recent report that shoppers are now looking to physical retail as a place for tactile discovery, human connection, and sensory relief from screens. Nearly three-quarters of consumers JLL surveyed have left a store early because they found it overwhelming or overstimulating.
“It’s really about the trip mission,” said Emily Albright Miller, executive vice president of retail store design at JLL. “If consumer expectations are set accordingly, it can be a very, very positive experience.”
Retail fundamentals and employee ownership
Scheels’ strength lies in well-executed retail fundamentals. Neat displays stand out in an era of cluttered spaces. Powell attributes this to the company’s employee-owned status, attracting professionals who care about the store’s success.
The retailer offers long-term careers and competitive benefits.
Scheels’ employee-owned structure supports a sense of pride and professionalism.
Strategic Growth and the Joy of Shopping
Scheels expands cautiously, prioritizing quality over rapid growth. With a relatively small footprint, the company focuses on strategic locations and a studied approach.
