Cabela's 2011 Annual Report Download - page 19

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We have historically received extensive local publicity from the unique Cabela’s shopping experience when
we open a store. As we enter into metropolitan markets, where the opening of a Cabela’s store may not be major
news, we will supplement any publicity with additional advertising to increase consumer awareness of new
store openings.
Competition
We compete in a number of large and highly 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, our strong credit card loyalty rewards program for our customers, 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 and outfitters 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 with our Legendary
Guarantee and Cabela’s Xtreme Protection plans. We continue to advance our efforts for offering customers a
seamless, integrated experience whether they shop with us in our retail stores, on the Internet, or on the telephone.
Our customers can always access well-trained, friendly, and knowledgeable associates and outfitters to answer
product use and merchandise selection questions. We believe 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, product information, and service operations.
Distribution and Fulfillment
We operate distribution centers located in Sidney, Nebraska; Prairie du Chien, Wisconsin; Wheeling, West
Virginia; and Winnipeg, Manitoba. These distribution centers comprise over 3 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, Canada Post, and the United States Postal Service. We use common carriers
and typically deliver inventory two to three times per week for replenishment of our retail stores.
Information Technology Systems
Our information technology 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 continue to make modifications
to our technology that will involve updating or replacing certain systems with successor systems, including
improvements to our systems for multi-channel merchandise and financial planning, e-commerce, and customer
relationship management.