) announced the opening of two new stores, one each in
Greenville, S.C.and Woodbury, Minn.These new offerings will
furnish the residents of the above regions with an additional
opportunity to own hunting, fishing, camping, and related outdoor
The 85,000-square-foot Woodbury store is the company's fourth
in the region and is slated to open in fall 2014. The store would
employ 185 full-time and part-time employees, while the
100,000-square-foot, Greenville store, which is slated to open in
spring 2014, would employ 235 full-time, part-time, and seasonal
The move reflects the company's strategic initiative to expand
in regions which provide ample growth opportunities, as the
residents of the above areas are passionate about outdoor
activities. Moreover, the company seeks to expand its store base
to effectively penetrate into its target markets and generate
Cabela's is capitalizing on the under-penetrated markets
through its new 'Outpost' store format, which is relatively
smaller in size and requires less capital investment.
The company earlier announced that it plans to open 6 domestic
next generation stores, 1 Canadian next generation store and 2
Outpost stores in fiscal 2013. Going forward, in fiscal 2014, the
company plans to open 8 domestic next generation stores.
However, the outdoor recreation and casual apparel and
footwear markets are highly fragmented and competitive. Cabela's
faces stiff competition from discount stores, such as
Wal-Mart Stores Inc
), as well as from specialty retailers, such as GanderMountain,
Bass Pro Shops, and Dick's Sporting Goods.
These competitors have a strong network of stores, greater
market presence and brand recognition, and financial resources.
In comparison, Cabela's currently operates through 40 retail
stores across the United Statesand Canada.
Currently, we maintain a long-term Neutral rating on Cabela's.
Moreover, the company holds a Zacks Rank #4 (Sell).
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