Cabela’s Inc. outlined several growth initiatives that it will undertake in fiscal 2010 as management for the outdoor retailer placed specific emphasis on building its direct business, expanding its retail reach, enhancing the company’s CLUB growth opportunities and improving merchandise performance.
From a retail standpoint, management said CAB hopes to fuel storefront expansion by improving cash flow and ROIC for its next-gen stores through several avenues expediting store development time by standardizing layout prototypes, improving time-to-market, reducing capital investments and continuing to pursuing prime retail locations.
Regarding initiatives in its direct business, Cabela’s will focus on building Internet transaction and expanding electronic marketing strategies including optimizing application of its search engine tool, targeting US and international markets and customizing Internet marketing campaigns. Likewise, the company plans to continue to refine customer contact strategies and employ advanced analytics to better react to changing consumer behavior.
For its CLUB faction, CAB plans to continue to drive new account growth through retail stores while raising account balances and increasing usage. The average account balance for CAB’s CLUB program has increased from $1,591 in 2006 to $1,712 in 2007 to $1,828 in 2008.
Finally, management for the self-anointed World’s Foremost Outfitter said the company will increase focus on gear for the core consumer while de-emphasizing the focus on periphery product. In doing so, they will focus on core-consumer priorities and product assortment/mix while refining pricing strategies. Management said they would also detail pre-season planning, reduce “unproductive inventory” and increase collaboration with vendors to help maximize profit margins.
