Retailers often ask us if they should buy keyword-rich domains to forward to their own website. Here is an example of the sort of emails our clients receive:
"We are writing to let you know that domain name EngagementRingsDallas.com is for sale for $250 – one time fee that gets you a full ownership of the domain.
Geo-descriptive domain name projects to the prospective customer that your business is the perfect match for what they are looking for. The domain’s forwarding feature enables you to point domain to your main website without creating a new one."
These keyword-packed domains have no value to your SEO. Google only gives weight to the preferred domain (yourstorename.com), not the forwarding domain. Unless you're planning on rebranding the company "Engagement Rings Dallas", then we strongly advise against buying such domains. One of the functions of Google's algorithms is to combat marketers gaming their ranking system. Keyword-stuffed domains are clearly a gray hat way of gaming the system and should be avoided.
These are spammers, more precisely "cybersquatters" who buy up local or generic domains and reach out to unsuspecting business owners. Don't bother buying that new domain unless you want that URL to become your primary one.