By JOSEPH S. PETE, Daily Journal of Johnson County staff writer
An executive of outdoor retailer Cabela's said the company could move forward with plans for stores in Greenwood and the Denver area as early as next year if the economy improves.
If a store does open in Greenwood, it might not always be the only one within a two-hour drive.
In a year-end report to investors, Cabela's executives reiterated that they would not move forward with expansion plans until existing stores do better. The Nebraska-based outdoor retailer opened eight stores last year, and sales at three of them have been disappointing.
Also, older stores have not been attracting the crowds they once did.
Cabela's profits for the fourth quarter rose 5 percent to $56.2 million, but sales at stores that have been open for more than a year dropped by 5.9 percent.
Still, the company's long-term plans call for more stores nationwide, including smaller stores like the one proposed for Greenwood, which would give Cabela's flexibility to open multiple stores in the same region, executives said.
As an economic downturn has hit all retailers, fewer customers have been shopping at Cabela's 26 stores across the country, executives said.
"Traffic to the stores is our single biggest driver of productivity, more than the merchandise," chief financial officer Ralph Kastner said. "It's all about the traffic."
As it expands, Cabela's will open smaller, next-generation stores between 80,000- and 125,000-square-feet, including the one planned for Greenwood. Stores that size allows the company to open more than one store in the same market, chief executive officer Dennis Highby said.
As a condition of an $18 million bond Greenwood offered, Cabela's agreed to put no store within 50 miles of the city but declined council member Ron Bates' request to put no store within 100 miles.
Under the current terms, Cabela's in the future could open another store as close as Anderson.
With the shift to smaller stores, Cabela's still should be able to get government financing, Kastner said.
But for the moment, the proposed store in Greenwood has no scheduled opening date.
The company is focusing on making existing stores more profitable, such as by using more targeted advertising and better inventory management, Highby said.
Stores will start to change their stock to reflect the season. Less archery and hunting gear will be kept in stores after hunting season ends, for instance.
Cabela's also will shift its stock and marketing to take better advantage of hunting seasons for different types of game such as elk and deer, he said.
Opening fewer stores over the next two years than originally planned will cut down on Cabela's opening expenses, which should allow the company to turn more of a profit next year, even with fewer customers reaching for the credit cards, Highby said.
If the economy picks up, Cabela's could look at opening the delayed stores, Highby said.
"We're very excited about those markets," he said. "Greenwood and Wheat Ridge (Colorado) are still under consideration, and we expect to open them."