Cabela's 2013 Annual Report Download - page 15

Download and view the complete annual report

Please find page 15 of the 2013 Cabela's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 132

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132

5
Retail Store Expansion. Enhancing our retail store efficiencies and taking the necessary steps to improve
our financial performance are high priorities in our strategic planning. Our new store growth is based on our past
experiences and is focused on new stores strategically sized to match their markets. We continually review our
decisions on new stores to reconfirm our market expectations. The next-generation stores generate more profit per
square foot compared to the legacy store base and allow us to enter additional markets. We opened 10 new retail
stores during 2013, as well as we relocated our former Winnipeg, Manitoba, retail store and replaced it with a new
70,000 square foot next-generation store in May 2013. Our store expansion in 2013 brings our total retail store
square footage to 5.9 million square feet, an increase of 15% compared to the end of 2012.
In 2014, we currently have plans to open new retail stores located as follows:
• next-generation stores in Christiana, Delaware; Greenville, South Carolina; Anchorage, Alaska;
Woodbury, Minnesota; Tualatin, Oregon; Cheektowaga, New York; Acworth, Georgia; Edmonton,
Alberta, Canada; Barrie, Ontario, Canada; and Nanaimo, British Columbia, Canada; and
• Outpost stores in Lubbock, Texas; Missoula, Montana; Augusta, Georgia; and Bowling Green, Kentucky.
For 2015 and thereafter, we currently have plans to open new retail stores located as follows:
• next-generation stores in Berlin, Massachusetts; Sun Prairie, Wisconsin; Garner, North Carolina;
Fort Mill, South Carolina; Bristol, Virginia; Moncton, New Brunswick, Canada; Ammon, Idaho; Fort
Oglethorpe, Georgia; and Short Pump, Virginia.
We plan to open 13 to 15 retail stores each year. The retail stores planned for 2014 represent approximately
one million new square feet of retail space or 17% square footage growth over 2013. It is expected that the planned
openings of these next-generation and Outpost stores will continue to generate an increase in profit per square foot
compared to the legacy store base.
Store Locations and Ownership. We own 42 of our 50 retail stores, with seven stores subject to ground
leases. 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. Refer to Item 2 – “Properties” for additional
information on our stores.
Direct Business
The Direct segment sells products through our e-commerce websites (Cabelas.com and Cabelas.ca) and direct
mail catalogs. Our Direct segment generated revenue of $974 million in 2013, representing 30.4% of total revenue
combined from our Retail and Direct businesses.
Direct Business Marketing. We market our products through our websites, mobile devices, and our
print catalog distributions. We recognize that the catalog business is mature, and we continue to refine our print
programs by balancing the optimal mix of print advertising with new emerging digital technologies. Our focus
on mobile marketing and social networking are increasingly important to us. With these technologies, we believe
mobile marketing and social networking will continue to build our brand, build our customer databases, and
enhance the management of contacts with our customers.
Our Cabelas.com website is a cost-effective medium designed to offer a convenient, highly visual, user-
friendly, and secure online shopping option for new and existing customers. In addition to the ability to order the
same products available in our catalogs, our website gives customers the ability to review product information,
purchase gift certificates, research general information on the outdoor lifestyle and outdoor activities, provide
product reviews and read product reviews by other customers to assist in making buying decisions, purchase highly
specialized merchandise, and choose from other services we provide.
Our digital transformation continues with efforts around enhancing our website to support the Direct
business. Cabelas.com continues to be the most visited website in the sporting goods industry according to
Hitwise, Inc., an online measurement company. The amount of traffic now coming through mobile devices is