Bass Pro considering acquiring Cabela's

[salvelinus]

Anybody else see this?

http://www.reuters.com/article/2015/11/05/us-cabelas-m-a-basspro-idUSKCN0SU2JY20151105

 

[KeithS]

Possibly explains the recent changes in warranty.

 

[JackM]

Who cares, they are both the same business model?

 

[salmonoid]

JackM wrote:
Who cares, they are both the same business model?

Because one way to grow your business is to acquire other businesses with the same model? Some people believe competition is good and this would lessen that? Evil capitalist Elliott Management trying to leverage their 11.1% stake in Cabelas to cash in?

A quick look at the store locator maps for the two chains shows this might be a pragmatic way to expand - I wonder how many of the two brands' stores are within 45 minutes or less of each other. And what density of big box outdoor retail shops can the USA (and Canada) really support?

 

[Fishidiot]

salmonoid wrote:
Because one way to grow your business is to acquire other businesses with the same model? Some people believe competition is good and this would lessen that? Evil capitalist Elliott Management trying to leverage their 11.1% stake in Cabelas to cash in?

A quick look at the store locator maps for the two chains shows this might be a pragmatic way to expand - I wonder how many of the two brands' stores are within 45 minutes or less of each other. And what density of big box outdoor retail shops can the USA (and Canada) really support?

Agree that this is an interesting dimension. I enjoy the big-box outdoor stores, especially our Cabelas here in PA but I wonder how many of these store can populate before the market gets oversaturated. These days we have two Gander Mountains, a brand new Field & Stream, a Bass Pro, and a huge Cabelas all within an hour or so of Harrisburg. Just a generation ago, these stores didn't exist and I doubt the number of hunters and fishermen in central PA has increased.
Should BP purchase C it could prove a good move since their business model seems to me to be essentially the same (I think BP has a bigger footprint in the South, but I'm not sure).

 

[Fishidiot]

This thread will be moved to Gear Talk shortly.

 

[greenghost]

Field & Stream and Gander Mountain are more traditional retailers.

Bass Pro and Cabelas are direct marketers with mainly online presence and only a relatively few, but huge, destination-type outlet locations. I agree they are very similar business models. But the bottom line for Cabelas has been a bit shakey and they are publicly owned... Bass Pro on the other hand has been a solid performing private company for years.

One thing for sure, the equity firm that just bought a large share of Cabelas stock is in it to make money, no matter what it takes. I hate those equity companies, I've worked for a few in the past... all very slimy.

 

[afishinado]

The rule of business > The bottom line is...the bottom line.

Lower = Higher (the lower the number of competitors, the higher the prices)

Corollary:

Lower = Lower (the lower the number of competitors, the lower the amount of brand and model choices offered and the lower the level of customer service)

 

[salvelinus]

Fishidiot wrote:
These days we have two Gander Mountains, a brand new Field & Stream, a Bass Pro, and a huge Cabelas all within an hour or so of Harrisburg. Just a generation ago, these stores didn't exist and I doubt the number of hunters and fishermen in central PA has increased.

While I posted the OP, I don't care much for big box stores and would rather patronize a traditional fly shop. How many are left in the same area? TCO in Reading is all I can think of. I hope the one they're opening in Boiling Springs next Spring is successful. They tried in Carlisle in the former Cold Spring Anglers shop and it quickly closed. Most of my purchases anymore are from shops that have an online store. It would be nice to have a good local shop again.

 

[dano]

Two of the three fly shops I frequented the most closed their doors this year. Erie and Buffalo. I give the other one maybe a year or two.
I'm running out of places to hang out after fishing.

 

[jdaddy]

This was really easy to see. Cabelas rode the "Obama gonna take my guns" and the Duck Dynasty thing as far as they could. If you would like to argue this simply read the last 3 years of financial reports from CAB.

 

[MKern]

I started dumping my cabelas bucks as soon as I heard this. It would have been easier but almost everything was listed as back order or limited stock.

 

[Bosshog]

Fishidiot wrote:

salmonoid wrote:
Because one way to grow your business is to acquire other businesses with the same model? Some people believe competition is good and this would lessen that? Evil capitalist Elliott Management trying to leverage their 11.1% stake in Cabelas to cash in?

A quick look at the store locator maps for the two chains shows this might be a pragmatic way to expand - I wonder how many of the two brands' stores are within 45 minutes or less of each other. And what density of big box outdoor retail shops can the USA (and Canada) really support?

Agree that this is an interesting dimension. I enjoy the big-box outdoor stores, especially our Cabelas here in PA but I wonder how many of these store can populate before the market gets oversaturated. These days we have two Gander Mountains, a brand new Field & Stream, a Bass Pro, and a huge Cabelas all within an hour or so of Harrisburg. Just a generation ago, these stores didn't exist and I doubt the number of hunters and fishermen in central PA has increased.
Should BP purchase C it could prove a good move since their business model seems to me to be essentially the same (I think BP has a bigger footprint in the South, but I'm not sure).

There is no such thing as Cabelas down here. Its only Bass Pro, and it's huge. They are every where.