Cabela's 2006 Annual Report Download - page 9

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5
New Store Site Selection. We have identified locations that may be suitable for new destination retail stores
as part of our retail expansion strategy. With only 18 destination retail stores in operation at the present time, we
believe opening additional destination retail stores provides a significant growth opportunity. Through our extensive
customer database generated by our direct business and additional demographic and competitive research, we
can identify geographic areas with a high concentration of customers that represent potential new markets for our
destination retail stores. We believe that there are many additional markets throughout North America that could
potentially support one of our large-format destination retail stores. We also believe that our customer database
gives us a competitive advantage in tailoring product offerings in each of our destination retail stores to reflect our
customers’ regional preferences. Additionally, we believe that smaller-format destination retail stores provide further
opportunities for future retail expansion.
We successfully opened four destination retail stores in 2006, increasing our total retail square footage by
607,537 feet or 29%. Our four destination retail stores opened in 2006 are located in Glendale, Arizona, Boise,
Idaho, Richfield, Wisconsin and LaVista, Nebraska. We have begun locating our stores closer to major metropolitan
areas to make our stores easier to reach for more of our customers.
Store Locations and Ownership. We currently own 17 of our 18 destination retail stores. However, in connection
with some of the economic development packages received from state or local governments where our stores are
located, we have entered into agreements granting ownership of the taxidermy, diorama or other portions of our
stores to these state and local governments. See Item 2 –“Properties” for a listing of locations of our stores.
Products and Merchandising
We offer our customers a comprehensive selection of high-quality, competitively priced, national and regional
brand products, including our own Cabela’s brand. Our product offering includes hunting, fishing and marine,
camping merchandise, casual and outdoor apparel and footwear, optics, vehicle accessories, taxidermy products,
gifts and home furnishings with an outdoor theme and furniture restoration related merchandise.
As of fiscal year end 2006, we had 48 product categories, which we have combined into five general product
categories that are summarized below. The following chart sets forth the percentage of revenue contributed by each
of the five product categories for our direct and retail businesses and in total in fiscal years 2006, 2005 and 2004.
Direct Retail Total
2006 2005 2004 2006 2005 2004 2006 2005 2004
Hunting Equipment . . . 27.1% 26.4% 26.6% 35.6% 33.8% 32.2% 30.7% 29.1% 28.4%
Fishing & Marine . . . . . 12.5% 12.5% 12.4% 16.7% 16.0% 16.2% 14.3% 13.8% 13.7%
Camping Equipment . . . 14.8% 14.8% 14.3% 12.1% 12.0% 11.1% 13.7% 13.8% 13.2%
Clothing & Footwear . . 36.7% 37.4% 38.2% 29.1% 31.5% 34.2% 33.5% 35.2% 36.9%
Gifts & Furnishings . . . 8.9% 8.9% 8.5% 6.5% 6.7% 6.3% 7.8% 8.1% 7.8%
Hunting equipment. We provide equipment, accessories and consumable supplies for almost every type
of hunting and sport shooting. Our hunting products are supported by services such as gun bore sighting, scope
mounting and bow tuning to serve the complete needs of our customer. We also provide items necessary for the
completion of any taxidermy project through Van Dyke’s Taxidermy.
Fishing and marine equipment. We provide products for fresh water fishing, fly-fishing, salt water fishing and
ice-fishing. In addition, our fishing and marine equipment offering features a wide selection of electronics, boats and
accessories, canoes, kayaks and other floatation accessories.
Camping equipment. We primarily focus on outdoor gear for the outdoor enthusiast, augmented with gear for
family camping and the weekend hiker. In addition, we include all terrain vehicles (“ATVs”) as well as accessories
for automobiles and ATVs in this general category.
Clothing and footwear. Our clothing and footwear merchandise includes both technical gear and lifestyle
apparel and footwear for the active outdoor enthusiast as well as apparel and footwear for the casual customer.