Cabela's 2009 Annual Report Download - page 13

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4
PART I
ITEM 1. BUSINESS
Overview
We are a leading specialty retailer, and the world’s largest direct marketer, of hunting, fishing, camping, and
related outdoor merchandise. Since our founding in 1961, Cabela’s® has grown to become one of the most well-
known outdoor recreation brands in the world. We have long been recognized as the “World’s Foremost Outfitter.”
Through our growing number of retail stores, and our well-established direct business, we believe we offer the
widest and most distinctive selection of high-quality outdoor products at competitive prices, while providing superior
customer service. We also issue the Cabela’s CLUB® Visa credit card, which serves as our primary customer loyalty
rewards program. Refer to Note 23 entitled “Segment Reporting” to our consolidated financial statements and our
“Management’s Discussion and Analysis of Financial Condition and Results of Operations” for additional financial
information regarding our Retail and Direct businesses, as well as our Financial Services business.
We were initially incorporated as a Nebraska corporation in 1965 and were reincorporated as a Delaware
corporation in January 2004. In June 2004, we completed our initial public offering of common stock. Our common
stock is listed on the New York Stock Exchange under the symbol “CAB”.
Retail Business
We currently operate 30 retail stores, 29 in 21 states and one in Canada. We opened a retail store in Billings,
Montana, in May 2009, increasing our total retail square footage to over 4.3 million square feet at the end of 2009.
Our Retail store business operations generated revenue of $1.4 billion in 2009, representing 56.7% of our total revenue
from our Retail and Direct businesses.
Customer Service. We continue to advance our efforts for offering customers integrated opportunities to
access and use our retail store, catalog, and Internet channels. Customer service venues include in-store pick-up for
Internet website orders, Internet kiosks, and catalog order desks. Our in-store kiosks provide our customers access
to our entire inventory assortment. 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 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 leverage by building on the strengths of each channel.
Store Format and Atmosphere. Our retail store concept is designed to appeal to customers from a broad
geographic and demographic range. Our next generation store format, with more standardized store sizes, expedites
store development time and allows us to pursue the best retail locations, is adaptable to more markets, improves
time to market, and allows us to be more efficient in our operations by reducing our capital investment requirements
and increasing sales per square foot. Our next generation store format is intended to improve our return on invested
capital and to better serve our customers by providing shopper-friendly layouts with regionalized product mixes,
concept shops, and new product displays/fixtures featuring an improved look.
Our retail stores range in size from 35,000 to 246,000 square feet and our large-format retail stores are 150,000
square feet or larger. Our large-format retail stores have been recognized in some states as one of the top tourist
attractions, often attracting the construction and development of hotels, restaurants, and other retail establishments
in areas adjacent to these stores.
Retail Store Expansion Strategy. Enhancing our retail store efficiencies and taking the necessary steps to
improve our financial performance is a high priority in our strategic planning. As such, we continually review our
previously announced stores to reconfirm our expectations based on what we have learned over the past year. We plan
to open a 75,000 square foot retail store in Grand Junction, Colorado, which is expected to open in the second quarter