) unveiled its plan to open a next generation store in Green Bay,
Wisconsin. The new store will provide the residents of the region
an additional avenue to own hunting, fishing, camping and related
The new store, which is slated to open in the summer of 2013,
will be the company's third store in the region and would employ
175 employees, including full-time, part-time and seasonal
The region provides ample opportunities for the company to drive
top-line growth, as the residents of the area are passionate about
outdoor activities. Supporting the view is the performance of the
company's present stores, which are generating healthy sales.
More than ever before, retailers have turned focus on buyers'
needs to create growth opportunities that could augment sales in
the long run. Cabela's came up with its new 'Outpost' store
format. The relatively smaller-size store will facilitate the
company to capitalize on the under-penetrated markets.
Last quarter, the company opened two next-generation stores, one
each in Wichita, Kansas and Tulalip, Washington. Moreover, the
company also announced its plans to open two stores in Denver in
However, the outdoor recreation and casual apparel and footwear
markets are highly fragmented and competitive. One of the company's
), recently unveiled its plan to open a CityTarget store at the
Beverly Connection in Los Angeles, California.
In order to tap the urban markets, where real estate remains a
constraint, Target introduced CityTarget stores. As per the
company, the new stores will vary in size from 60,000 to 100,000
square feet compared with its typical format of 125,000-180,000
Despite competition, Cabela's next-generation store format,
multi-channel strategy and seasonal product assortments enable it
to focus on increasing store productivity and sales per square foot
while lowering its labor costs.
Currently, we maintain a long-term Outperform rating on
Cabela's. Moreover, the company holds a Zacks #1 Rank, which
translates into a short-term Strong Buy recommendation.
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