It's official: Bass Pro to acquire Cabelas

[Bucksnbows]

It took some time, but this massive deal finally went through.  Bass Pro is now the Walmart of the hunting and fishing and outdoor world.  Lots of stories breaking out on the 'net last night and today.  Both companies made an announcement, so it's official now.

 

http://www.usatoday.com/story/money/2016/10/03/bass-pro-shops-cabelas-acquisition/91459212/

[Haskell_Hunter]

I don't have a full analysis of this yet (give me time), but there are a few things to consider.

 

Cabelas was losing money, so a hedge fund pressured them to sell.  They had the option to reorganize, but went the sale route because it's easier.  Transformations are risky and expensive, sales are simpler and more predictable.

 

Selling to Bass Pro means there is a 100% chance that stores will close.  The reason Cabelas was losing money was that sales were down.  Operating a retail space, especially like the grandiose Cabelas retail experience, is very expensive.  Those stores probably cost a fortune to operate, and closing them down and consolidating product into a Bass Pro store (or the opposite), will save money.  And since wherever there's a Cabelas there's a Bass Pro, closing stores to consolidate makes sense.

 

There will most likely be a consolidation of warehouses and distribution, so some DC's will shut down.

 

In the end it means that probably 1/3 to 1/2 of the staff between the two companies will be let go.  You'll see a less diverse product line offered between the two brands.  I think it'll actually exasperate the underlying problem for the giant retailer:  People are starting to go back to their mom & pop local shops because you can usually find what you're looking for and get great service.  If you can't find it at your local, you'll find it online from Amazon, eBay, or some other outfitter who has a great deal on it.

 

Ironically, WalMart is feeling this pinch too.  Their competitive advantage--filling their big-box stores with the right amount of inventory--is being diminished by online sales.  I think that Cabelas and possibly Bass Pro are feeling this pinch too.  But this consolidation won't necessarily be good for the consumer or employee IMHO.

[Bucksnbows]

HH, a good initial analysis.  We know one fact which is that the number of hunters and anglers continues to decline throughout the US, but the remaining hunters and anglers continue to spend more and more $$ each year.  At some point, those two divergent lines will intersect and all stores will suffer, not just mom and pops or big box stores or the medium sized guys out there.  Of course, we Americans may one day wake up and realize that all the online crap is making us fat and lazy and we reconnect with our outdoor past, but that also may never happen and hunting and fishing become largely a thing of the past in a few short generations.  

[mattg1500]

i use to be a big fan of Cabelas years ago, even got a black card, but they have changed. i find they dont stand behind products, prices are high, shipping is ridiculous. we will see what happens

[rgw]

yea but I never had a issue with cabellas shipping ammo. not sure with basspro

[Merkel]

Stock is up 14% today on the takeover. The family lost interest in the business after the brother died. Credit card business was the only segment making money. can't imagine this is good news for the consumer. Time will tell.

 

On a side note I never had an issue ordering ammo from Cabela's via the mail. Never been to BP. natchezss.com has decent sales.

[joe987654321]

I suspected that they would eventually be acquired. I picked up some CAB shares after the 08 market crash for 7 a share. Still have it, but wish l would have bought more .

[Bucksnbows]

I pretty much only buy from their Bargain Basement with gift cards

 

 

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[Bucksnbows]

I get better prices from Ramsey with my TU membership card which gives 20% off non sale items.

 

 

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