Leading specialty retailer, Cabela’s Inc. (CAB - Analyst Report) announced its plans to open 3 new stores, one each in Berlin, Mass; Cheektowaga, N.Y.; and Lubbock, Texas.
These new stores will furnish the residents of the above regions with an opportunity to own hunting, fishing, camping, and related outdoor merchandise.
The 88,000-square-foot Cheektowaga store is the company’s first in the region and is slated to open in fall 2014. The store would hire 200 employees, while the other 88,000-square-foot, Berlin store is scheduled for spring 2015. This store would also engage 200 employees and marks the company’s first store in the region.
The move reflects the company’s strategic initiative to expand in regions which provide ample growth opportunities, as the residents of the above areas are passionate about outdoor activities. Moreover, the company seeks to expand its store base to effectively penetrate into its target markets and generate healthy sales.
Alongside, Cabela's is capitalizing on the under-penetrated markets through its new ‘Outpost’ store format. We remain optimistic about this new store format as it requires less capital investment, enhances store productivity, and helps increase sales per square foot.
The 42,000-square-foot, Lubbock store is in keeping with Cabela’s Outpost store format and is slated to open in summer 2014. The store would employ 90 employees.
Currently, Cabela’s carries a favorable Zacks Rank #2 (Buy).
Other Stocks to Consider
Beside Cabela’s, the other stock worth considering in the non-food retail, wholesale sector includes Big 5 Sporting Goods Corp. (BGFV - Analyst Report), which holds a Zacks Rank #1 (Strong Buy) and is expected to continue with its upbeat performance. The Gap, Inc. (GPS - Analyst Report) and Coastal Contacts Inc. , carrying a Zacks Rank #2 (Buy) are also worth considering.