Cabela's 2007 Annual Report Download - page 33

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The Future
While we anticipate that the business environment in which we operate will be challenging in 2008, we believe
our multi-channel model and our strong brand name provides us with opportunities for growth and profitability.
Over our history, we have built name recognition and a quality brand that is renowned and respected in the outdoor
industry. Throughout our multi-channel business, our strategy is to continue our focus on providing legendary
customer service, quality, and selection.
For 2008, our primary focus will be on managing our business efficiently to enhance near-term and long-term
results for our shareholders, a significant portion of which are employees and directors of Cabela’s. Our focus will be
on the following initiatives as established by our executives:
•improve our advertising strategy by using more targeted campaigns throughout our multi-channel model
to increase store traffic;
•improve retail store sales and profitability through enhanced product assortment, streamlined flow of
merchandise to our retail stores, and reduced operating expenses;
•maintain merchandise gross margins in our sales channels;
•improve inventory management by actively managing quantities and product deliveries through enhanced
leveraging of existing technologies, and by reducing unproductive inventory;
•the opening of two new stores in 2008; and
•completion of customer service enhancements for better service including in-store pick-up, catalog desks,
and Internet kiosks.
Retail Store Efficiencies – For 2008, our primary objective is to enhance our retail store efficiencies and
improve our operating results. We intend to achieve this objective by enhancing and optimizing our retail store
merchandising processes, management information systems, and distribution and logistics capabilities. To enhance
our customer service at our retail stores, we are focusing on customer service through training and mentoring
programs.
Leverage Our Multi-Channel Model – We will advance our efforts for offering customers integrated
opportunities to access and use our retail store, catalog, and Internet channels, including completing our roll-out of
Internet kiosks, catalog order desks, and in-store pick-up for catalog and Internet purchases. Our in-store pick-up
program allows customers to order products through our catalogs and Internet site, and have them delivered to the
retail store of their choice without incurring shipping costs, increasing foot traffic in our stores. Conversely, our
expanding retail stores introduce customers to our Internet and catalog channels. Our multi-channel model employs
the same merchandising team, distribution centers, customer database, and infrastructure, which we intend to further
capitalize on by building on the strengths of each channel, primarily through improvements in our merchandise
planning and replenishment systems. These systems will allow us to identify the correct product mix in each of our
retail stores, and also help maintain the proper inventory levels to satisfy customer demand in both our Retail and
Direct business channels, while also driving improvements in inventory turns.
Next Generation Stores – To enhance our returns on capital we are developing a next generation store format
which incorporates the following objectives:
• a store development model that will be adaptable to more markets, faster to start-up, and more efficient to
operate to reduce our investment and increase sales per square foot; and
•to provide shopper-friendly layouts with regionalized product mixes, concept shops, and new product
displays/fixtures featuring an improved look.
Internet Expansion – We will pursue the following key growth objectives to continue our leadership position
in this channel:
• natural growth by offering industry-leading selection, service, value, and quality;
•category expansion to capitalize on the general outdoor enthusiast;
•an enhanced focus on the Canadian market by building on our 2007 Canada acquisition; and
•targeted marketing designed to increase sales overall and to transition customers from the catalog channel.