Cabela's 2014 Annual Report Download - page 15

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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 strategy of new store growth, in
part based on our past experiences, is focused on the location of new stores strategically sized to match their
markets. We consider the impact of larger market locations with an established competitor as well as the increased
competition in urban markets in determining the size of a new store, its location, and the flexibility in its layout to
appeal to customers. We continually review our decisions on new stores to reconfirm our market expectations. The
new format stores generate a higher profit per square foot compared to the legacy store base and allow us to enter
additional markets.
For 2015, we have announced plans to open 13 stores with over one million square feet of retail space. This
equates to approximately 15% annual square footage growth over 2014. These new format retail stores are located
as follows:
x Berlin, Massachusetts; Fort Mill, South Carolina; Sun Prairie, Wisconsin; Garner, North Carolina;
Fort Oglethorpe, Georgia; Ammon, Idaho; Moncton, New Brunswick, Canada; Noblesville, Indiana;
West Chester, Ohio; Oklahoma City, Oklahoma; Huntsville, Alabama; Bristol, Virginia; and Calgary,
Alberta, Canada.
Beyond 2015, as we continue our pace of new store openings, we expect to see more stores in smaller
markets. The following communities have been announced as new store locations beyond 2015:
x Short Pump, Virginia; Lexington, Kentucky; Woodbury, New York; League City, Texas; Ottawa,
Ontario, Canada; Farmington, Utah; and Gainesville, Virginia.
Store Locations and Ownership. We own 58 of our 64 retail stores, with 18 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 $852 million in 2014, representing 26.6% 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 believe that mobile marketing and social networking technologies will continue to build
our brand, build our customer databases, and enhance the management of contacts with our customers. As such,
we recognize that the catalog business is mature, and so we have continued to evaluate our print programs and
strategies by balancing the optimal mix of print advertising with new emerging digital technologies. Changing to
a more customer centric focus compared to direct marketing processes that were heavily driven via the catalog
production cycle has allowed us to better exploit online engagement opportunities, embrace new marketing
strategies, and bring synergies to our Internet channel, which inherently has quick-to-market attributes that we will
continue to capitalize on.
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. Cabelas.com continues to be the most
visited website in the sporting goods industry according to Hitwise, Inc., an online measurement company.