) is all set to serve the residents of Kalispell, Montana, by
opening a new store. This new offering will furnish the residents
of the region with an opportunity to own hunting, fishing, camping,
and related outdoor merchandise.
The new 42,000 square feet store is slated to open in fall 2013
and would hire 75 full-time and part-time employees. The company
stated that the region provides healthy growth opportunities to
drive top-line growth, as the residents of the area are passionate
about outdoor activities.
Moreover, this relatively smaller size store is the part of the
company's new 'Outpost' store format and will adopt a "core-flex"
merchandise strategy (selected core assortment of products and
flexible seasonal merchandise). The new store model of standard
size requires less capital investment and will facilitate the
company to capitalize on the under-penetrated markets.
Cabela's next generation store format, multi-channel strategy
and seasonal product assortments enable it to focus on increasing
stores productivity and sales per square foot while lowering its
The company expects to open its first Outpost store in Union
Gap, Washington in the fall of 2012 and remains on course to open
another store in Saginaw, Michigan, in 2013. Moreover, the company
expects to accelerate its retail square footage growth by opening
10 next-generation stores (80,000- to 100,000-square-feet stores)
by the end of 2014.
Cabela's is a leading specialty retailer and direct marketer of
hunting, fishing, camping, and related outdoor merchandise and
faces stiff competition from discount stores, such as
Wal-Mart Stores Inc
). The company operates through 39 stores across the United States
Currently, we maintain a long-term 'Outperform' rating on
Cabela's. Moreover, the company holds a Zacks #2 Rank, which
translates into a short-term 'Buy' recommendation.
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