Cabela's Inc. (CAB) 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 labor costs.

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. (WMT) and Target Corporation (TGT). The company operates through 39 stores across the United States and Canada.

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.



Filed Under: ,
Tickers in this Article: WMT, TGT, CAB

comments powered by Disqus

Trading Center