New store format boasts Cabela’s Q3 results
Sidney, Neb. – Cabela’s said that strong performance from its next-generation store format helped drive its third quarter net income up 16.6%, to $49.9 million compared to $42.8 million in the year ago quarter. The company also announced plans for three new stores.
Revenue grew about 15%, from $741.2 million to $850.8 million. Same-store sales grew 3.9%.
“In today’s difficult marketplace, the strong performance of our next-generation stores continues to be a competitive advantage,” said Tommy Millner, Cabela’s CEO. “Growing our retail footprint through our next-generation store format provides an exciting vision into the future of our company.”
In the third quarter, Cabela’s said it had 14 of its 18 next-generation stores e open for the full period, with the new stores outperforming its legacy store base by approximately 50% in sales per square foot and approximately 60% in profit per square foot.
“Based on this, we plan to expand retail square footage at a low to mid-teens rate over the next several years with our next-generation and Outpost store formats,” said Millner.
GNC Holdings profit up 17%
Pittsburgh – GNC Holdings reported strong results for the third quarter of fiscal 2013, reporting a net income increase of 17.3%, from $62.2 million to $73 million.
Revenue grew about 9%, from $621.6 million to $675.6 million. Same store sales increased approximately 6.7% in domestic company-owned stores (including GNC.com sales) in the third quarter of 2013, while in domestic franchise locations, same-store sales increased 5.9%.
Looking ahead, GNC expects to make some major supply chain investments in 2014, including opening a fourth distribution center serving domestic stores, located near Indianapolis, in the first half of next year.
In addition, in October of this year GNC transitioned to a third party pooled carrier product transportation network and away from its private fleet, a move expected to produce $5 million in annual pretax savings.
Target rolls out in-store pickups as part of multichannel initiative
Target is getting ready for the holidays with a big multichannel push that includes expanding its in-store pick-up program for products ordered online to all of its U.S. stores by Nov. 1 — a service that is now available in about half of the chain’s locations.
Target will run an ad campaign Dec. 1 through Dec. 3 that promotes deals during Cyber Monday and the rest of Cyber week.
Target’s overall holiday campaign, themed “My Kind Of Holiday,” will extend across all channels, including broadcast, radio, in-store, catalogs, digital and social media.
Beginning in November, Target will invite consumers to join the conversation by using the hashtag #MyKindofHoliday. The company is also bringing social media into its stores and its catalogs. Starting Nov. 18, Target will highlight about 100 holiday products across all areas of its stores that have been trending well on Pinterest. It will also make reference to Pinterest in its holiday catalogs.
In other key initiatives, the discounter is extending the timeframe of its price match policy for the holiday season beyond the typical-seven day window. If a customer purchases a qualifying item at Target between Nov. 1 and Dec. 21 and then finds it for less at Target.com, a local competitor’s printed ad or at select online retailers, Target will match the price.