Cabelas on Hold in MT!

[TFinalshot]

From the Daily Olympian

Billings Cabela's store on hold


BILLINGS, Mont. -- Outdoor retailer Cabela?s has put plans for a store in Billings, Mont., on hold because of a ?challenging consumer environment,? the company said.

The company is reducing from five to two the number of stores it plans to open this year. In November, the company said it planned to open a store in Billings in the summer of 2008.

Company spokesman Joe Arterburn said there will be little activity in Billings until the company decides how much it wants to expand.

Linda Beck, the director of business outreach and recruitment for the Big Sky Economic Development Authority, said she's been told the company still plans to open a store in Billings, but at a later date.

The company said it is going to slow its retail expansion and focus on improving the profitability of its existing stores.

 

[Boskee]

It would appear that all the opposition to them being affiliated with real estate sales in the area has them rethinking their position. I'm sure many of the small business owners in the area are giving a sigh of relief. I think Cabela's decided that they can better use their employment & tax & conservation dollars elsewhere and most likely won't be throwing too many dollars towards other causes in the area. Now the locals will have to step up and fund their own conservation funds and I'm sure that will go along way to protecting those lands that locals felt Cabela's were marketing away from them. My guess is the properties still will get sold and the locals still lose in the end. It's a double edged sword on issues like these but when you tell one of the largest contributors towards conservation that you don't want them there there are hundreds of other communities that will welcome them with open arms.

 

[FishlakeElkHunter]

>It would appear that all the
>opposition to them being affiliated
>with real estate sales in
>the area has them rethinking
>their position. I'm sure many
>of the small business owners
>in the area are giving
>a sigh of relief. I
>think Cabela's decided that they
>can better use their employment
>& tax & conservation dollars
>elsewhere and most likely won't
>be throwing too many dollars
>towards other causes in the
>area. Now the locals will
>have to step up and
>fund their own conservation funds
>and I'm sure that will
>go along way to protecting
>those lands that locals felt
>Cabela's were marketing away from
>them. My guess is the
>properties still will get sold
>and the locals still lose
>in the end. It's a
>double edged sword on issues
>like these but when you
>tell one of the largest
>contributors towards conservation that you
>don't want them there there
>are hundreds of other communities
>that will welcome them with
>open arms.

Very Well said Boskee!!!!!

 

[sremim]

They're holding off building in Denver for the same reasons.









It's Bush's fault!!!

 

[Flatlandr]

Exact same deal happened in Indiana. They had the site ready for the footings to go in and put the brakes on. They say they will proceed with construction just not this year and will not commit to date right now.

 

[Cornhusker]

Boskee said "It would appear that all the opposition to them being affiliated with real estate sales in the area has them rethinking their position"

Well said but incorrect. The slowdown from the goal of 100 stores and 5 this year was caused by a combination of things. None of them related to the real estate sales. I would trust what Joe says he's a straight shooter. Not looking for an arguement but your position it would relate to real estate
sales might hold in Montana. What about the other 3 stores.

After they went public growth occured a little to quickly to meet infrastructure resources that are in place at Sidney which is corporation headquarters.

Sidney is a small town of 6,000 and just getting qualified corporate employees to match the growth has been difficult.

 

[TFinalshot]

Whatever the reasons, I hope they remember who took them to this dance, if they keep up their strong arm trophy propery sales tactics, I'll never forgive them. If they do clean up their act, and stop the begging for local and federal subsidies, I might once again support them. At the end of the day, I'd just assume travel to Idaho for a weekend get away and shop at one than to have on in my state anyhow; they are as bad or worse in some cases as Wal-Mart! Corporate handouts and subsidized all day long; no thanks, send them back to Sidney, and tell them not to come back to Montana until they can make it on their own money while trying to buy off our fish wildlife and parks department . . .

Yea, I know, now Montana will shrivel up and die right - LOL I doubt it. . .

 

[Boskee]

Cornhusker I'm sure the slowing economy played a larger role in the decision but a company like Cabela's success has been achieved by a good public image and great service and the sales that go along with it. Their perception in the markets they wish to build is fundamental to their long term success. You don't invest that kind of money in a project that isn't wanted in any area. They're not a Walmart they're a specialty retailer and that makes a huge difference in how you market. Cabela's is smart enough to put a spin on any subject to not allow negative press when avoidable. Cabela's doesn't have to build there to keep their market share especially when their stores actually compete with their catalog sales unit. I think they wanted a store there for the romantical aspect of the area more so then the sales demographics of the area. There are literally hundreds of larger markets that could much easily support one of their stores than Billings Montana. Pulling back in this market shows good business sense but only time will tell if the locals really impacted the decision long term. I'm sure Joes shooting straight but I'm also pretty sure that they now are very aware that they may not have all the public support they had initially. That's something they can't afford to overlook.

 

[HardcoreOutdoor]

Specialty retailer?! Have you been in a Cabela's recently? There is nothing specialty about it. It is a cross between Wally World and Disney land. It has becaome a destination attraction. Go in and try to have a substitive conversation about optics or rifles or even clothing with one of their associates. Oh, they are polite but they don't know what they have, they don't know where it is and they can't tell you much about it or why it is the right piece for you if they can find it.

Most people I know would rather order through the catalog or go to a local boutique shop. At least there they can get some real service.

It is a shame. I grew up devouring every Cabela's catalog that hit the mailbox. But all good things must come to an end I guess. They went public and the accountants took over. Now it is all about monetizing the brand in every possible way. And Bass is no different. I am going local.

Wade
www.hardcoreoutdoor.com

 

[cqh1]

"The company said it is going to slow its retail expansion and focus on improving the profitability of its existing stores."

Their products are made in China or Indonesia for $.50 and sold in their stores for $200. How much more profit can they want?

 

[HardcoreOutdoor]

I have had some enlightening conversations with the boys in Sidney over the last few days and I am betting that their holding off has more to do with span of control then finances. I get the impression that they realize that the stores have gotten away from them a little bit and they are tying to get things back under contol before they put anymore coal on the fire.

I can respect that. I hope they get their program squared away. If I were going to hand out any free advice, I would tell them what everybody told the Dixie Chicks, shut up and sing. Get out of the real estate business, the travel business, the tag service business, the banking business and concentrate on your core competantcy. Ruling the world through horizontal expansion is a great thesis paper topic for MBAs but in reality I think it is a fastrack to bankruptcy.

Wade
www.hardcoreoutdoor.com