Cabela's 2014 Annual Report Download - page 5

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feet. This was all done while improving transportation
costs as a percent of total merchandise sales by
50 basis points.
In 2015, our new distribution center in Tooele, Utah, will
provide capabilities to serve our customers’ needs at
a level we have never before experienced. Through the
development of this new facility, we have incorporated
features that foster continuous improvement in our
distribution capabilities by enhancing efficiency,
integration of best-in-class processes, utilization of
automation and capabilities that will allow vendors to
more effectively work with our distribution network.
Cabela’s CLUB
Throughout 2014, our Cabela’s CLUB Visa program
continued to generate outstanding growth. Average
active credit card accounts grew by 7.6% to 1.8 million
accounts. Average balance per active credit card
account grew 4.5%, and net charge-offs reached
historically low levels, finishing the year at 1.69%. In
2014, our customers earned roughly $214 million in
free merchandise through our CLUB rewards program.
Our CLUB members are our very best customers.
They shop with us more frequently and have a higher
average spend, and we are extremely pleased with their
willingness to place our card at the top of their wallet.
The CLUB program growth continues to benefit from
retail square footage expansion, and we could not be
more excited about future growth opportunities.
I am extremely proud of each and every Outfitter and
their ability not only to endure this period of recovery
but to thrive through the correction and strengthen the
position of our Company to a higher level than we have
ever been before. I have no doubt the accomplishments
we have achieved over the past year and the
groundwork we have laid for our future represent the
beliefs and values Dick, Mary and Jim established so
many years ago. We gained meaningful experience from
the challenges we faced in 2014, and we are extremely
excited for the opportunities ahead.
All my best,
Tommy Millner,
President and Chief Executive Officer