Bass Pro Shops' Acquisition of Cabela's: A Merger of Outdoor Retail Giants
In September 2017, the outdoor retail industry witnessed a seismic shift as Bass Pro Shops acquired Cabela's in a deal valued at approximately $5.5 billion. This merger between two giants in the world of hunting, fishing, and outdoor gear created a retail powerhouse that promised to revolutionize the outdoor retail landscape. In this article, we will explore the history of both companies, the reasons behind the acquisition, and the impact it had on the outdoor retail industry.
The Birth of Two Legends
Bass Pro Shops and Cabela's are both iconic brands, each with a rich history of serving outdoor enthusiasts. Johnny Morris founded Bass Pro Shops in 1972, while Cabela's had its beginnings when Dick and Mary Cabela started a small mail-order business in 1961. Both companies expanded rapidly, developing a loyal customer base over the years. Bass Pro Shops was known for its immersive in-store experiences, while Cabela's established itself as a leading direct-to-consumer retailer.
The Rationale Behind the Merger
Several factors contributed to the decision for Bass Pro Shops to acquire Cabela's. One of the primary drivers was the evolving landscape of the retail industry, particularly the growth of e-commerce. The merger was seen as a strategic move to counter the challenges posed by online retail giants like Amazon, who were making inroads into the outdoor gear market.
By merging forces, Bass Pro Shops and Cabela's aimed to enhance their competitiveness and adapt to the changing retail environment. They could also share resources and reduce overhead costs, leading to increased efficiency and improved profitability. The deal was structured to include the sale of Cabela's credit card portfolio to Capital One, which would help fund the acquisition.
Impact on the Outdoor Retail Industry
The merger between Bass Pro Shops and Cabela's created a giant that was better positioned to compete in the evolving retail landscape. Here are some of the significant impacts the acquisition had on the outdoor retail industry:
Enhanced Market Presence: With a combined network of over 180 stores across North America, the merger significantly expanded their market presence. This made it more convenient for outdoor enthusiasts to access their products and services.
Increased Bargaining Power: As a single entity, Bass Pro Shops and Cabela's gained more negotiating power with suppliers. This allowed them to secure better deals and pass on cost savings to their customers.
Innovation and Growth: The merger spurred innovation and investment in technology, e-commerce platforms, and customer experiences. The companies worked to create a seamless omnichannel experience, combining the best of both brands.
Streamlined Operations: Combining their operations allowed for cost savings, and it also reduced redundancies, making the businesses more efficient.
Challenges to Competitors: The merger posed a significant challenge to other outdoor retail competitors, encouraging them to adapt and innovate in response to the newly strengthened competition.
Conclusion
The acquisition of Cabela's by Bass Pro Shops was a transformative moment in the world of outdoor retail. It demonstrated how two established brands could come together to adapt to the evolving industry landscape while providing a more diverse and comprehensive array of products and services to outdoor enthusiasts. This merger not only ensured the survival and growth of these iconic brands but also challenged other retailers to innovate and meet the changing needs of their customers in a digital age. The merger between Bass Pro Shops and Cabela's has solidified their place as industry leaders, and they continue to serve as beacons for outdoor enthusiasts across North America.
