Jessica Rieger October 15th, 2018
Chapter Four-Short Answers
Cabela's is pursuing the efficiency-enhancing practices in retail store expansion and innovation. Cabela's want to enhance their retail store ability and take the crucial steps to improve their financial performance (SEC-10K). This is a high priority in their strategic planning. Their strategy is focused on new locations of the new stores to size their markets. Cabela's have considered its impact of larger market locations. They need to established a competitor as well as increase the competition in urban markets to determine the size of new stores, their locations, and flexibility in its layout to appeal to customers (SEC-10K). They continue to review their choices on new stores to reconfirm their market possibility. Cabela's believe its critical to on go innovation how on the company select, design and build their retail stores. While they apply best-in-class omnichannel retail practices. They want to improve customer experience and reduce overall store costs from innovation to grand opening. New stores promote higher profit per square foot compared to legacy store base (SEC-10K). This allows Cabela's to access the broader choice of markets. Cabela's believe that the planned openings of the future store will persist to promote higher profit per square foot compared to their legacy store base.
In 2015, Cabela’s stores that were open did not meet up to their sales and profitably expectations. Cabela's believe if they slow new store growth over the next two years as they address retail store performance and productivity. Cabela's are analyzing their store model to evaluate store level performance and productivity. This includes store cash flow, sales per square foot, store operating contribution margin, construction costs within a store, allocation of space within a store, Cabela's brand, brand assortment between national brands and customer experience within a store (SEC-10K). Their goal is to "have a store model that is more predictable in order to maximize sales, margins, cash flows and an acceptable return on invested capital" (SEC-10K).
Cabela's plan for 2016 is to open eight new stores with total retail square footage of about 600,000. That is 7% annual square footage growth compared to the end of 2015 (SEC-10K). These locations for the new store sites in 2016 are Lexington, Kentucky, League City, Texas; Short Pump, Virginia; Centerville, Utah; Abbotsford, Ohio; Farmington, British Columbia, Canada; Avon, Ohio; Ottawa, and Canada; Ontario (SEC-10K).
Cabela's is a multi-channel retailer who is in the direct catalog business. Cabela's has come across an enormous amount of "bad" email addresses (Experian. 2015, March 04). The company wanted to confirm this was invalid. They wanted to make sure all the subscribers were receiving the weekly email marketing campaigns....