), a leading outfitter of hunting, fishing and outdoor gear,
intends to expand its operations in Canada. The company plans to
open a 70,000 sq. foot store in Calgary, Alberta.
The new store will mark Cabela's third outlet in the state of
Alberta, the other two being located in Edmonton. The new outlet,
which will come up near the Deerfoot Mall will be built on the
model of Cabela's next-generation stores and its construction is
likely to begin in the later part of 2014. The store will generate
employment for about 180 full-time and part-time employees when it
opens in the fall of 2015.
Cabela's forayed in Canada in 2007 and its headquarters are located
in Winnipeg, Manitoba. In total, the company operates five stores
in Canada, including two in Edmonton and one each in
Winnipeg, Saskatoon and Regina.
The company plans to open another 20 next-gen stores over a two
year time frame, which includes stores in Barrie, Ontario,
(Jul 10, 2014), Nanaimo, British Columbia, (fall of 2014) and
Moncton, New Brunswick (2015).
Strong performance of Cabela's next-generation stores continues to
cushion its top and bottom lines. Moreover, these next-generation
stores are outperforming the company's legacy stores in terms of
both sales and profit per square feet. We remain optimistic about
this next generation store format as it requires less capital
investment, enhances store productivity, and helps to increase
sales per square feet.
Earlier in June, the company announced its plans to open three
domestic next-gen outlets in Huntsville, AL; Woodbury, NY and
Oklahoma City, OK.
The company's store expansion drive reflects its initiatives to
expand in regions that have considerable growth potential.
Moreover, the company is looking for opportunities to expand its
store base to effectively penetrate into its target markets and
generate healthy sales.
Currently, Cabela's has a Zacks Rank #3 (Hold). Better-ranked
stocks worth considering in the retail sector include
Build-A-Bear Workshop Inc.
Five Below, Inc.
Office Depot, Inc.
). All these carry a Zacks Rank #2 (Buy).
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