Cabela's 2007 Annual Report Download - page 12

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Competition
We compete in a number of large and highly fragmented and intensely competitive markets, including the
outdoor recreation, and casual apparel and footwear markets. The outdoor recreation market is comprised of several
categories including hunting, fishing, camping, and wildlife watching, and we believe it crosses over a wide range of
geographic and demographic segments.
We compete directly or indirectly with other broad-line merchants, large-format sporting goods stores and
chains, mass merchandisers, warehouse clubs, discount and department stores, small specialty retailers, and catalog
and Internet-based retailers.
We believe that we compete effectively with our competitors on the basis of our wide and distinctive merchandise
selection, and the superior customer service associated with the Cabela’s brand, as well as our commitment to
understanding and providing merchandise that is relevant to our targeted customer base. We cater to the outdoor
enthusiast and the casual customer, and believe we have an appealing store environment. We also believe that our
multi-channel model enhances our ability to compete by allowing our customers to choose the most convenient sales
channel. This model also allows us to reach a broader audience in existing and new markets and to continue to build
on our nationally recognized Cabela’s brand.
Customer Service
Since our founding in 1961, we have been deeply committed to serving our customers by selling high-quality
products through sales associates who deliver excellent customer service and in-depth product knowledge. We strive
to provide superior customer service at the time of sale and after the sale through our 100-percent money-back
guarantee. Our customers can always access well-trained, knowledgeable associates to answer their product use and
merchandise selection questions. In the latter part of 2007, we began implementing customer service enhancements
directed, in part, at increasing customer satisfaction. These enhancements continue our efforts at offering customers
integrated opportunities to access and use our retail store, catalog, and Internet channels through our introduction
of Internet kiosks, catalog order desks, and in-store pick-up for catalog and Internet purchases. Our in-store pick-up
program allows customers to have products ordered through our catalogs and Internet site and delivered to the retail
store of their choice without incurring shipping costs, increasing foot traffic in our stores. Conversely, our expanding
retail stores introduce customers to our Internet and catalog channels. We believe that our ability to establish and
maintain long-term relationships with our customers and encourage repeat visits and purchases is due, in part, to the
strength of our customer support and service operations.
Distribution and Fulfillment
We operate distribution centers located in Sidney, Nebraska; Prairie du Chien, Wisconsin; and Wheeling, West
Virginia. These distribution centers comprise nearly 3.0 million square feet of warehouse space for our retail store
replenishment and Direct business activities. We ship merchandise to our Direct business customers via United
Parcel Service and the U. S. Postal Service. We use common carriers and typically deliver inventory two to three
times per week for replenishment of our retail stores.
Management Information Systems
Our management information and operational systems manage our Retail, Direct, and Financial Services
businesses. These systems are designed to process customer orders, track customer data and demographics, order,
monitor and maintain sufficient amounts of inventory, facilitate vendor transactions, and provide financial reporting.
We continually evaluate, modify, and update our information technology systems supporting the supply chain,
including our design, sourcing, merchandise planning, forecasting and purchase order, inventory, distribution,
transportation, and price management systems. We are making modifications to our technology that will involve
updating or replacing certain systems with successor systems during the course of several years, including
improvements to our systems for multi-channel tracking and processing of inventory, and improvements to our
customer relationship management system.