Cabela's 2014 Annual Report Download - page 19

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9
seamless, integrated experience whether they shop with us in our retail stores, on our website, or on the telephone.
Our customers have access to well-trained, friendly, and knowledgeable associates and outfitters to answer product
use and merchandise selection questions. We believe our ability to establish and maintain long-term relationships
with our customers and encourage repeat visits and purchases is due, in part, to the strength of our customer
support, product information, and service operations.
Distribution and Fulfillment
We operate distribution centers located in Sidney, Nebraska; Prairie du Chien, Wisconsin; Wheeling, West
Virginia; and Winnipeg, Manitoba, Canada. These distribution centers comprise approximately 3.3 million square
feet of warehouse space for our retail store replenishment and Direct business activities. We also are building a
600,000 square foot distribution center in Tooele, Utah, to support our growth. At December 27, 2014, construction
was in progress, and we expect to have this distribution center operational by July 2015. In August 2013, we leased
a 325,000 square foot distribution center in Tooele, Utah, that we anticipate will be in use through the opening of
the new distribution center currently under construction. In June 2014, we announced the transition to a third-party
logistics provider for our distribution needs in Canada. As a result of this transition, we are closing our distribution
center in Winnipeg, Manitoba, in March 2015. The third party logistics provider began processing a portion of our
Canada merchandise in a Calgary, Alberta, distribution center in October 2014.
We ship merchandise to our Direct business customers via United Parcel Service, Federal Express, Canada
Post, and the United States Postal Service. We use common carriers and typically deliver inventory two to
three times per week for replenishment of our retail stores. We also operate a merchandise return center in
Oshkosh, Nebraska.
We have added our retail stores to our distribution network through the omni-channel fulfillment process,
so customers who order through our call centers or website are no longer solely dependent upon the stock we have
in our distribution centers. We now ship products to our customers from both our distribution centers and our
retail stores.
Information Technology Systems
Our information technology and operational systems are an integral function of our Retail, Direct, and
Financial Services businesses. Our information is processed in a secure environment to protect both the physical
assets and the actual data from security breaches and cyber attacks. These systems are designed to process
customer orders, track customer data and demographics, order, monitor, and maintain sufficient amounts of
inventory, facilitate vendor transactions, and provide financial reporting. We continually evaluate, modify,
and update our information technology systems supporting our supply chain, including our design, sourcing,
merchandise planning, forecasting and purchase order, inventory, distribution, transportation, and price
management systems. We continue to make modifications to our technology that will involve updating or replacing
certain systems with successor systems, including improvements to our systems for omni-channel merchandise and
financial planning, e-commerce, and customer relationship management.
Employees
At the end of 2014, we employed approximately 19,300 employees. We use part-time and temporary workers
to supplement our labor force at peak times during our third and fourth quarters. None of our employees are
represented by a labor union or are party to a collective bargaining agreement. We have not experienced any work
stoppages and consider our relationship with our employees to be good.
Seasonality
We experience seasonal fluctuations in our revenue and operating results. Due to buying patterns around the
holidays and the opening of hunting seasons, our merchandise revenue is traditionally higher in the third and fourth
quarters than in the first and second quarters, and we typically earn a disproportionate share of our operating