Hmmm. this may turn out to be interesting….
From this article posted at New West Travel & Outdoors:
Cabela’s Desecrating its Own Brand
By Bill Schneider, 11-22-07
It has taken Cabela’s a long time to move into Montana, but now that iconic retailer of hunting and fishing goods finally has a stake in the sand down in Billings, it might be wondering if it was the right decision.
Cabela’s has become accustomed to being revered by hunters and anglers, but in Montana, many sportsmen and women now have the opposite attitude, disdain–and they’re sending back their catalogs with promises never to spend another penny there. When opening a new store, Cabela’s expects the local hunters and anglers who have lusted for years to have a store nearby to more or less knell on the doorstep, but if Cabela’s doesn’t stop endorsing the loss of public hunting, the corporate VIPs might see people picketing the Billings store opening with anti-Cabela’s placards.
Here’s the rub. Back in June 2004, Cabela’s went public and is now listed on the New York Stock Exchange under the symbol CAB. Such initial public offerings are always accompanied by plans on how to use all the new money for aggressive growth. And sure enough, Cabela’s launched into a major expansion, which primarily involving more and faster store openings.
No problem so far, the more and faster the better as far as I’m concerned, but a small part of that growth plan, a real estate marketing division called Cabela’s Trophy Properties might hurt Cabela’s bottom line and stock performance (already down to about half of its opening price) more than it helps. In Montana, the ruckus over the real estate division has already tarnished the best brand in the business, and it looks like it could get much worse and spread to other states.
I personally don’t want to see this happen because I’m one of those who grew up revering Cabela’s. I’d probably live in a Cabela’s store if they’d let me–at least for a few days until I had to leave to file for bankruptcy. And I bet the company’s brass and shareholders want to prevent damage to their brand even more than I do. If so, they need to act quickly and decisively instead of doing what they’re doing right now, which is seriously underestimating the potential of the problem.
The controversy erupted when Cabela’s Trophy Properties opened an office in Montana and started listing what the Montana Wildlife Federation (MWF), the state’s largest group of hunters and anglers, calls “traditional public hunting properties.” Those listings shot up a warning flare to the MWF’s 7,000 members, and the result was a strongly worded letter from executive director Craig Sharpe going to Dennis Highby, president & CEO of Cabela’s. In the letter, Sharpe warned of a “strong response” to the real estate marketing, such as mailing back or burning catalogs, unless Cabela’s addressed the group’s concerns and agreed to a meeting to discuss the issues.
A flash point in the controversy was the sale, planned subdivision and eventual closure to public hunting of two large ranches in central Montana by Cabela’s Trophy Properties. “Is this in line with Cabela’s mission?” Sharpe asked in his letter.
Read the entire story at the link above
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