Competition between Bass Pro Shops and Chappell, Neb.-based Cabela’s (NYSE: CAB) is ramping up as the national outdoor retailers battle toe-to-toe in a cozy Appalachian market.
To the casual observer, it may seem Bass Pro could have a hard time attracting shoppers in early 2014 to its 104,000-square-foot store in Bristol, Tenn., with Cabela’s 85,000-square-foot facility scheduled to open around the same time about five miles north in Bristol, Va. The border towns have a combined population of 46,000 with annual median income less than $35,000, according to the U.S. Census Bureau.
But one local marketing expert said a sizeable NASCAR draw and a healthy metropolitan statistical area should be enough to support the nontraditional retailers.
Amy Stokes, Ph.D., an assistant professor of marketing at Missouri State University, said both Bass Pro Shops and Cabela’s are focused on providing a customer experience. “What these types of stores compete on is not price,” she said.
The race to Bristol comes on the heels of Cabela’s opening in Rogers, Ark., roughly 80 miles southeast of Bass Pro’s Branson Landing store. Bass Pro also is venturing into the Natural State with a 125,000-square-foot store slated to open in Little Rock, Ark., in late 2013.
Competition between the two retailers is nothing new. Bass Pro’s Bristol site would be the company’s 21st store in 14 markets located within 100 miles of Cabela’s stores, according to Springfield Business Journal research.
Downplaying the competitive aspect, Bass Pro spokesman Larry Whiteley said the company examines customer trends from catalog purchases, area Internet sales and ZIP code data tracked at its stores when considering new sites. “We’re very happy with the site we’ve chosen. We had a chance for the site (Cabela’s) ended up taking; we didn’t want that one,” Whiteley said. “Competition is welcome. We are close to (Cabela’s) in several areas of the country.”
Bass Pro’s store will anchor The Pinnacle, a 250-acre mixed-use development, while Cabela’s is anchoring The Falls, a proposed 140-acre development.
Cabela’s spokesman Wes Remmer said the company also considered catalog and Internet sales before pursuing The Falls.
“We’re focused on our product in Bristol, Va. We’ve had a great relationship with officials on that side, and are confident the store will do well. We’ve researched the area and know there are a ton of outdoor enthusiasts across the region,” Remmer said.
He said Cabela’s Bristol store would have an outdoor look and feel and, much like Bass Pro, it’s designed as much as a destination as it is a retail shop. The store will have a fudge shop, a gun library and a mountain replica with game animals recreated in their natural habitat, Remmer said.
“We like to provide our customers with a well-rounded shopping experience. We hope that when someone walks in the door, they are doing more than beelining to a certain aisle, grabbing a product and leaving. We want people to spend time there and enjoy the experience,” he added.
MSU’s Stokes described both stores as destination retailers that fall into an emerging marketing category dubbed “retailment,” because they are entertainment draws as much as retailers.
Stokes said that while the cities of Bristol are relatively small, the larger metropolitan statistical area is home to roughly 500,000 people. Bristol, Tenn., is also famous for the Bristol Motor Speedway, the eighth largest sports venue in the world, holding up to 165,000 people, according to Yahoo Sports.
“The one that will have the competitive edge is the one that goes all the way and commits to the retailment concept,” Stokes said. “That’s the thing about retailment or destination locations, it’s not about shopping there because it is convenient.”
The entertainment value of such stores draws people from around the region, she said, adding that visiting NASCAR fans might stop by either retail attraction.
Whiteley said Bass Pro has not selected a theme for the Bristol store and the company would lean on focus groups to help mold the its character. He said the typical Bass Pro retail center attracts between 2 million and 3 million people a year.
Bass Pro – which posted 2011 revenues of $3.83 billion, according to Forbes – is used to operating near its top competitors, Whiteley said, pointing toward Academy Sports & Outdoors’ move to Springfield, as an example. Whiteley said sales in Springfield have increased since Academy entered the market, but he declined to disclose figures.
Whiteley said Sporting Goods Business magazine recently ranked Bass Pro No. 4 in the Top 100 Sporting Goods Retailers in America behind other retailers commonly found in the cities it serves: Wal-Mart, Dick’s Sporting Goods and Target.
Like Whiteley, Remmer said he wasn’t concerned about the retailers competing in the Bristol market. Cabela’s posted 2011 revenues of $2.81 billion, according to
Cabelas.com.
“People who like the outdoors have options no matter where you go,” Remmer said.
