Cabela's - World's Foremost Outfitter: A Case Study in Destination Retailing

Mohinder S. Dugal, Western Connecticut State University

ABSTRACT
A relatively new trend in retailing is to become a destination retailer - one which consumers will make a significant effort to patronize, and are willing to drive several hours to spend a substantial time in. How do "destination store" companies differ from traditional retailers, and what is unique about their strategic orientation? This study traces the strategy of a premier destination retailer - Cabela's - from its inception in 1961 to becoming one of the most well-known outdoors equipment brand in the world today. The case study examines how Cabela's dominates its segment through its physical locational strategies, its website presence, and its catalog strategies. The case study also overviews its financials, its competitors, and some critical issues it faces going forward. In addition, the case study offers students several unique issues to analyze and debate, including guns sales at Cabela's and its strategy to use heavy subsidies from local governments where it chooses to locate.

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Updated 03/19/2014