Bass Pro Shops Acquires Cabela's

Discussion in 'Current Events' started by CapnTreee, Oct 3, 2016.

?

Have you shopped at either

  1. Yes, I've shopped at Bass Pro Shops

    100.0%
  2. Yes, I've shopped at Cabela's

    100.0%
  3. No, I don't do outdoors

    0 vote(s)
    0.0%
  4. No, what's shopping?

    0 vote(s)
    0.0%
Multiple votes are allowed.
  1. CapnTreee

    CapnTreee ...disgusted...

    Joined:
    Nov 2011
    Messages:
    13,018
    Likes Received:
    4,650
    Trophy Points:
    223
    http://www.wsj.com/articles/bass-pro-shops-to-acquire-cabelas-1475500278

    Bass Pro Shops struck a deal to acquire Cabela’s Inc. for about $4.5 billion in cash, combining two of the biggest sellers of outdoor-sports gear in the latest shift in a rapidly changing sporting goods industry.

    The merger would create a national chain with more than 180 locations and roughly 40,000 workers. The combined company would control more than 20% of the $50 billion U.S. hunting, camping, and fishing market, according to Stifel analyst Jim Duffy.

    Both chains are famous for mega-sized stores filled with hunting and fishing supplies. Closely held Bass Pro Shops has opened most of its locations in the eastern half of the country since its founding in the 1970s, while Cabela’s, which had revenue of $4 billion last year, has focused on the western half. Both are competing with giants like Wal-Mart Stores Inc. as well as the shift to online shopping.


    The acquisition follows lengthy cost-cutting and restructuring initiatives at Cabela’s, which had struggled in recent years with lagging same-store sales, and had been under pressure from activist investor Elliott Management Corp. The Sidney, Neb.-based retailer said in December that it was reviewing strategic options, including a possible sale.

    Cabela’s shareholders will receive $65.50 a share, a 19% premium to Friday’s closing share price, in a deal the companies say will combine complementary product lines and domestic geographic markets. The companies valued the deal at $5.5 billion; company-provided deal values often include debt and other items.

    Shares of Cabela’s, up 18% this year, rose about 15% to $63.01 in afternoon trading. The company, which was founded in 1961, went public in 2004 at $20.

    The deal, which is expected to close in the first half of next year, unites Cabela’s 85 retail stores and Bass Pro Shops’ 99 locations and Tracker Marine Centers. Bass Pro founder and Chief Executive John Morris will serve as CEO of the combined company, and its majority owner, the companies said. Through the company, Mr. Morris wasn’t immediately available for comment.

    Bass Pro secured $2.4 billion in preferred equity financing from the merchant banking division of Goldman Sachs Group Inc. and private-equity firm Pamplona Capital Management.

    The two retailers have developed fiercely loyal customer bases, in part through Cabela’s rewards program and through audacious displays in their stores. Bass Pro Shops last year opened a 530,000-square foot megastore at the Pyramid in Memphis, Tenn., featuring a cypress swamp, a 28-story free-standing glass elevator, and an alligator habitat, according to its website. Cabela’s, for its part, has been well known for its expansive displays of taxidermy wildlife within its stores.

    Cabela’s has more than doubled its store footprint in the last four years, the majority of which are wholly owned, according to an annual filing. The company in 2012 unveiled an initiative to reformat the layout of new stores, a measure aimed at boosting profitability. The company’s sales per retail square foot benefited from an initial boost, but have fallen steadily since.

    John Horan, publisher of industry tracker Sporting Goods Intelligence, said Cabela’s ran into trouble as its new locations began to cannibalize its e-commerce business. Mr. Horan said the marriage of Bass Pro and Cabela’s won’t result in many store closures. Unlike the recent liquidation of Sports Authority, which faltered in part due to the surplus of competing stores in key metro areas, big outdoor markets like Denver and Dallas can support multiple retail locations, he said.


    Both Bass Pro and Cabela’s have had to deal with a wildly fluctuating market for firearms, sales of which typically accelerate ahead of major elections like the current U.S. presidential race. Meanwhile, Mr. Horan said the sport of hunting has been on the decline, as “not as many people are living in rural areas, and most of the interest in guns is more suburban: a lot more women, people interested in target shooting, and self-defense.”

    Bass Pro Shops said it would begin a multiyear partnership with a unit of Capital One Financial Corp. for a Cabela’s co-branded credit card business. Cabela’s financial services business, which included $5 billion in net credit card loans as of Jan. 2, generated $503 million in revenue last fiscal year. The companies said their customer-loyalty programs will remain unchanged
     
  2. TAFNAC

    TAFNAC Cossack Staff Member Administrator

    Joined:
    Nov 2011
    Messages:
    3,863
    Likes Received:
    2,577
    Trophy Points:
    163
    I've shopped at both. I'm only a wanna be redneck, so I don't notice much of a difference between them. Not sure if this is a good or bad thing.

    I guess sportsman's warehouse is next.
     
  3. CapnTreee

    CapnTreee ...disgusted...

    Joined:
    Nov 2011
    Messages:
    13,018
    Likes Received:
    4,650
    Trophy Points:
    223
    Sportman's Warehouse is too average compared to the other two.


    I've sold to both and been to many stores. I've seen Bass Pro Shops with their own lake so you can try out your new fishing boat. Iv'e seen indoor archery and shooting ranges, indoor waterfalls, climbing walls, stuffed animals galore. IMO their perfect for this merger/acquisition because they were both over the top on scale. The ones in Vegas and Phoenix are small compared to some back east.

    Instead of 100 fresh water fishing poles they'd have 1000 to choose from.
    Stores that can be 8-10 acres inside.
    Average shopping time at a Cabela's was nearly 6 hours. Average.
    People drive for hours to get to a Bass Pro and many have been known to camp in the lot overnight.
     
  4. TAFNAC

    TAFNAC Cossack Staff Member Administrator

    Joined:
    Nov 2011
    Messages:
    3,863
    Likes Received:
    2,577
    Trophy Points:
    163
    Yeah, I've been to a MegaCabelas outside of Austin. Cool store.
     
    CapnTreee likes this.
  5. Rubricon

    Rubricon DSP Legend Staff Member Administrator

    Joined:
    Nov 2011
    Messages:
    9,283
    Likes Received:
    3,285
    Trophy Points:
    173
    I say we open tiny outdoor stores to compete with them.
    Instead of 1000 fishing rods how bout 5.
    But lots of knives, and some swords. And bowcasters.
    Its crazy how a tactical backpack costs 87 bucks at one of these stores but costs 7 bucks wholesale from china.
     
  6. Rubricon

    Rubricon DSP Legend Staff Member Administrator

    Joined:
    Nov 2011
    Messages:
    9,283
    Likes Received:
    3,285
    Trophy Points:
    173
    I am taking my own advice.
    Tactical Win just got its first order of swords. Yay!
    Now i have to actually make a website and estore for the fake business i pretended to have while i sold some dude in mexico a crate full of swords.
    Its real now.
     
  7. CapnTreee

    CapnTreee ...disgusted...

    Joined:
    Nov 2011
    Messages:
    13,018
    Likes Received:
    4,650
    Trophy Points:
    223
    How'd that work out for you?
     
  8. Rubricon

    Rubricon DSP Legend Staff Member Administrator

    Joined:
    Nov 2011
    Messages:
    9,283
    Likes Received:
    3,285
    Trophy Points:
    173
    Slow going. Do not have any time after work. Tired and there is always stuff that i need to do.
    So have not found enough time to work on a website.
    All i have is a couple permits and domain names.
    Since then i have only sold a few things to a couple of family members who arent working.
    They resell them to people they know and we split the profits.
    But i need to go out and get the business.
    Which i know exactly where my customers are and how to get them.
    Guys that run dojos/gyms, masonic/fraternal halls, team coaches/managers, and military recruitment centers.
    These guys buy product in massive quantities at different periods during the year.
    Back that up with an online presence that sells regular small orders to retail customers funnelled in from amazon/ebay and other means.
    The online stuff would focus more on the novelty or more decorative type products. Like foam swords from your favorite video game/anime /movie character or mid 18th century firearm/rapier/saber replicas.
    That kind of thing sells everyday.
    Renaissance fair stuff sells all the time too.
    Halloween would be like Christmas. And Christmas would be better.
    Just no time unfortunately.
    But i gotta make time.
    I think im going to stop paying Netflix for a couple months and see what happens.
     
  9. CapnTreee

    CapnTreee ...disgusted...

    Joined:
    Nov 2011
    Messages:
    13,018
    Likes Received:
    4,650
    Trophy Points:
    223
    I got tired of paying 'web developers' so I built my last 3-4 websites myself
    It's mostly SEO database management and images
    More images sell more products

    We can chat sometime about even the GoDaddy web ecommerce backend
    Not awesome but serviceable
    I'm using BigCommerce right now which offers more meta features
    they're all the same unless you're going full fancy
    but that can be silly $$$$
     
  10. Rubricon

    Rubricon DSP Legend Staff Member Administrator

    Joined:
    Nov 2011
    Messages:
    9,283
    Likes Received:
    3,285
    Trophy Points:
    173
    We are transitioning from Volusion/Stone Edge/Channel Advisor back end to a BigCommerce/Seller Cloud/Channel Advisor backend at work.
    Big Commerce is already going to be a huge improvement over Volusion.
    We will be using new shipping software as well as loyalty/rewards software. We want something gamified with rankings stuff that gets you points like product reviews and successful word of mouth advertising. More of these should integrate with Big Commerce, but they are pricey.
     
  11. CapnTreee

    CapnTreee ...disgusted...

    Joined:
    Nov 2011
    Messages:
    13,018
    Likes Received:
    4,650
    Trophy Points:
    223
    Yeah if I leave BigCommerce it will be for the price. However I love their feature set. Lots and lots of hooks available if you build the database well. Auto reminders for abandoned carts, all sorts of things. The first time I had a customer order from an abandoned cart reminder I was stunned. Shit works.

    I've run out of inventory mostly so I don't spend so much time massaging the site anymore but I still, and always, show up #1 in the organic search so I'm happy with the BigCommerce search functionality.
     

Share This Page