BASSPRO is reportedly buying CABELA'S

[stokesrj]

http://sportingclassicsdaily.com/issue/ ... ng-cabelas

[Corjack]

Yep, I heard about this. Apparently a bass pro investing group bought 11% of their stock. Giving them a
Controlling interest.

[mchughcb]

I was reading the financial review at the airport this week and it said America better get ready for shareholder activists. Specifically it named cabelas and ConAgra.

For me it could be a disaster. Bass pro ships even less international than cabelas. Also competition could be dead. Basspro always had a smaller hunting section that cabelas.

Finally as noted in Harvard business review more than 80% of mergers don't add any long term value. I can't see how they intend to add value, other than laying off more people and service will suffer.

[stokesrj]

I like Cabela's more than BassPro. But there is no Cabela's in my home state of Florida. I was just in the Cabela's in Allen Texas this week. I always like to go in and look around but I seldom buy anything.
Bob

[mchughcb]

The newspaper said that the activists want to move the head office out of Nebraska. Who knows they might setup in Florida.

There is a lot of junk of course but its still good to have a choice, and I appreciated being able to try several cheap (compared to Oz) meindl hiking shoes and underarmour shirts which I bought.

[thechamp]

I don't buy much from either one because they are generally too expensive. I will go to Cabelas from time to time to browse and see what's new. Sometimes I'll pick up some ammo there. Price isn't cheap but it beats ordering a box of something to try and pay the shipping cost on one box.

Having been in the marine business for quite a few years I have a very dim view of Bass Pro. I watched them buy up boat lines and then commence to cheapen the product. Friend of mine was a dealer for one of the center console boats that Bass Pro bought. His cost as a dealer was about what they were selling the boats to the public for. He added high quality galvanized trailers and they added cheap junk trailers that rusted out in a few years. Obviously he couldn't compete since the majority doesn't really understand or care what they're buying as long as the price is cheap. Their size and ability to cheapen the products put most of the boat dealers out of business in San Antonio. One was fairly large and had been the 'big' dealer since the dad had opened it in the 1950s. They quit and sold the property to Rush Bus company. My bud tried to hang in there but in the end threw in the towel and went back to the oil fields where he'd made his nest egg in the first place. There are a few small ones left and really the only way to survive now is with maintenance and selling niche boats that Bass Pro doesn't compete with and those are small markets. I also got to know the employees of the local Bass Pro stores and the way they were run reminded me of Walmart's automotive shop. No offense to the guys who do it right but most leave a lot to be desired. The arrogance of upper management was sickening. Most of those guys have since left Bass Pro. Their employee turnover is quite high.

So to sum it up I sure hate to see this. Maybe Cabelas can figure out a way out of this mess. Like being taken over by ISIS...

[mchughcb]

Yes, well I've only been into two bass pro shops but the employees knew nothing of the products and were nowhere near as helpful as Cabelas. Recently I've had a few inquiries to Cabelas and to their credit they responded rather quickly including fixing up their website where they had made a mistake. If it comes down to how much more cheap chinese crap they can peddle through the stores then they will lose a lot of customers. Even when you go to order a treestand from Lonewolf, it says ships directly from the manufacturer. As most manufacturers are now offering web based sales and I take my hat off to Lone Wolf for really helping me out here with accessories then you have to ask what value is Cabelas going to give if they turn into Bass Pro.

[ebrownw2]

Cabelas>Basspro. Always has been. I hate to see this. The consumer will lose.

[Corjack]

Cabelas>Basspro. Always has been. I hate to see this. The consumer will lose.

Yep. All negatives, and no positives for sure.

[Corjack]

What they want is the Bank. It has been explained to me, that It is not legal for a retailer to own a bank. Bass Pro does not own the bank that issues their credit cards. In the case of Cabelas, The Bank is part of the organization and issues the cards. It makes BILLIONS, of dollars a year. Way more profitable than the actual stores. It is 11% of annual revenue.

[mchughcb]

What are you thinking? They spin the bank out or replace the cards at bass pro?

[stokesrj]

The annual income of Cabela's is 3 Billion and Bass Pro is 4.2 Billion.
Bob

[mchughcb]

Thanks Bob. I haven't gone into the finance of each but that is a surprise. Cabelas is always packed with people whereas bass pro was not when I visited.

[jeff]

I've visited a few Bass Pro shops in Florida mainly, and a couple of Cabelas in Washington and elsewhere, and have always preferred Cabelas. They seem to be a shooting and hunting shop that also sells outdoor products, whereas Bass Pro always seems to be fishing and outdoors that sold a bit of shooting and hunting gear. That said, I'd kill to have an equivalent of either over here!!


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[Corjack]

Pretty good article http://www.bloomberg.com/news/articles/ ... -in-buyout

Also several sources have contacted Bass Pro, and Cabelas, and they have declined to comment.