The Gander Mountain crash….the reality of it

Well, it looks like having a big selection to chose from at many dealers this spring will be a thing of the past. I just completed a few distributors shows, and it was very disappointing. Dealer turn out was very low, very small minimal orders, and very few orders on new products for 2018.

Over and over it was the same conversation with nearly every dealer. “I sold a lot of bait and that kept the lights on…but tackle was about nothing.” “I still have a lot of inventory and I don’t see that selling out yet this year” “I’m not taking anything new until I sell out of last years’…too much money tied up.”

As the conversations got deeper, it was the same issue. With the huge flood of inventory being liquidated at G.M., many customers were buying bait at the local shops and nothing else. Additionally, guys were stocking up so the sales of product that would have taken place over many different dealers and time was consolidated. You can’t blame the consumer for getting in on deals. But flooding the market with so much product has really taken a bite out of future sales. I’m guessing it will be another case of “Cash for Clunkers”. Flood the market and then its dead for a year or two.

Additionally, the liquidation company that sold out the G.M. inventory was bringing in stock from other sources. Guys were figuring this out and knew which days to hit what stores for “new” buys. This contributed to saturating the market even further.

So 2018 is looking to be an interesting year in the market. A lot of great innovative ideas and cool products that will never be on the shelves because dealers don’t want to invest in a dead market. Can’t blame the dealers, you can only extend yourself so far with product on credit. When its not selling, you can’t afford to go further in debt. So the backlash of the Gander Mountain deals has begun.

I always try to buy local, but they generally don’t have what I want. So I just go online. If a great new product is out, someone on here, will be talking about it.

As a a whole I don’t know how the mom & pop shops will survive. The more people that buy on-line the more the shops will suffer. GM as just a additional nail in the coffin. In this day and age it seems all people care about is saving a nickle for themselves at the expense of other folks making a living. The falsehood is that big box and on-line stores are good for the public. I’ll argue that forever. A example. Do you really think the grocery store battle in the metro is between Hy Vee & Cub, & WalMart? It’s not. It’s those 3 knocking out any and all independent grocers. The small neighborhood guy, the small convenience store. Those are the guys they want to knockout. When you build a $10 to $15 million dollar grocery store you are in effect freezing anybody other then your biggest competitors out of that area. Once that happens the prices start to creep up across the board.

Same will happen in the outdoor business.

The one thing is if nobody else wants to invest, Gander Outdoors can now swoop in on everything that is not being marketed at other stores and be the sole retailer for many new products.

Great point of view Randy, thanks for sharing.

Usually try to pick up at least few items here and there from local bait shops. This is something us small guys do have a say in, and that say is with your wallet.

The days of in-store shopping are numbered. The best way to have a brick and mortar business is to offer a service that you can’t get online such as repair services.

Don’t forget that mom and pops stores exist online as well. I know plenty of people selling merchandise online for a living. Granted you are using some massive corporate system to sell products, people can still make a really good living doing so.

I’ve always liked supporting the small shop, the local guys. Gander, Cabelas, Bass Pro, Dicks….not much. Gander, Dicks and Sportsmans Warehouse went down a road that led away from the angler and hunter. Our Rochester Scheels I could see going the route these three have gone with all the clothes and peripheral crap they sold. I told the Scheels general manager that they’d be wise to put all of the fishing and hunting/shooting related merchandise on the main floor so its seen as soon as the door is opened and to put all the other junk up on the second floor.

With the internet, merchandising is becoming a dying art, one that small shop owners are masters of. Small shop owners , just like the mom and pop grocery stores, are being forced out not because they are dynamic at what they do and provide, but because the greedy big box dinks and internet sales make reasonable competitive pricing impossible. People watching small shops lock up and not offering the live bait they want only have to look at their computer keyboard or their phone to address half of the problem. Small shops depend on tackle sales more than bait sales, but they cannot afford to lose either one. They don’t have a very broad profit margin. Money spent on the internet or at big box stores is money not spent where it matters the most.

David Blais wrote:

I always try to buy local, but they generally don’t have what I want. So I just go online.

Unless you are looking for something more specialized, they should have most “needs”. Where do you buy fishing line, lures, terminal tackle, other boat or ice fishing accessories? Have you ordered any of that online? Those items would be available at local businesses. Which leads to this…

Dutchboy wrote:

As a a whole I don’t know how the mom & pop shops will survive. The more people that buy on-line the more the shops will suffer. In this day and age it seems all people care about is saving a nickle for themselves at the expense of other folks making a living.

Perhaps I am the exception here. I will pay a reasonable amount more to buy from a local shop if it helps keep them in business. There are times when you might need something today. Which leads to this…

biggill wrote:

The days of in-store shopping are numbered. The best way to have a brick and mortar business is to offer a service that you can’t get online such as repair services.

Don’t forget that mom and pops stores exist online as well. I know plenty of people selling merchandise online for a living. Granted you are using some massive corporate system to sell products, people can still make a really good living doing so.

Sad if the local “brick and mortar” businesses were all gone. There are those times on a trip or away from home when things like pliers, hook cutters, nets, battery chargers for ice fishing electronics falls overboard or down the hole. Or times when you get somewhere and realize you forgot an important item or equipment at home? Cheaper online ordering will not help you out at times such as that.

Just echoing a few of the same things said:
I always like to support the “little guy” and I’d gladly pay $2 more for a floating rapala if that lure is one the local baitshop recommends and it puts increased fish in the boat.

On the other hand…
If I know the fishery well, there are certain lures that I want in the boat, that know will be unlikely the local bait shop will carry. I am very particular in my lures (as I assume others are too). Gives me increased confidence to know lure “x” last year, in this same spot and time, crushed the fish. That’s when I usually order off the internet as I don’t want to roll the dice to see if the local bait shop has exactly the size, color, and style lure that I’m looking for.

Joes Sporting Goods is always busy. Their sales personnel are knowledgable and helpful. They are more expensive than the competition and their customer service justifies their pricing. Fleet Farm has great pricing. Not much has changed at the F&F that I frequent. I assumed that store was going to change on some level after being aquired by a 100 billion dollar investment firm but it really has not.

Small shops can make, they just have to adjust to what the customer is looking for. Pricing, selection, and customer service are important to the customers of these small shops. Offer something unique and customers will have a reason to keep coming back. Shops like Thorne Bros.,Capras, Reeds were all small at one point as well and they figured out the things that were important to customers and they are doing well today.
Amazon is great to buy on because of the mixture of price and selection, but I’ll take places like Scheels and Thorne Bros. any day because of the service they provide and their prices and selection are great as well!

I think troutbum hit the nail on the head in a way. There’s probably a “critical mass” that a store has to have in order to be sustainable. I fish on Leech fairly often, and every time I’m up I end up going into Reeds for something. In fact, they are probably my preferred dealer. Pretty big store, knowledgeable staff, regional chain. They also price compete well though.

Joes Sporting Goods is similar (though I don’t think they price as competitively).

On the other hand, I don’t buy anything but minnows/leeches at the tiny bait and tackle shops. They often have a 5-10% markup on equipment/larger purchases.

My guess is that this sort of market may really hurt the tiny shops, but I don’t think it’ll be a major impact on the middle market players.

Not sure how valid the argument is here. Went to Gander 5-6 times over the “Going out of business” sales. Never found any deals. In fact, a few items I did buy ended up being over priced anyway. Got the shaft as all those buys were no return – all sales final. Fleet Farm and Cabelas were already competing for that business.

-J.

Walleyestudent Andy Cox wrote:

Sad if the local “brick and mortar” businesses were all gone. There are those times on a trip or away from home when things like pliers, hook cutters, nets, battery chargers for ice fishing electronics falls overboard or down the hole. Or times when you get somewhere and realize you forgot an important item or equipment at home? Cheaper online ordering will not help you out at times such as that.

I didn’t mean to suggest that they will all disappear. If there’s a need, there will be a business.

That is unless Amazon gets approved for drone deliveries.

Although the root cause is technology, it really boils down to culture. When was the last time you saw strangers having a casual conversation in line at Chipotle? People don’t know how to talk to each other anymore.

Interesting observations, Randy.

I guess to me it’s just a sign o’ the times. On one hand, I want the little guys to be around for when I need them, but I freely admit I love the convenience, selection, and prices offered online.

Case in point, I had to fix a generator this week that had a cracked fuel tank. Ordering parts was literally a matter of three mouse clicks and the part showed up 2 days later. Contrast that to the good old days of calling 3-4 places trying to find someone who had it in stock and then ending up placing an order anyway, driving to pick it up, etc, etc, etc.

The reality in retail is that you HAVE to get online right to survive. Some places will survive because of service or location, but from a pure retail standpoint you have to have a significant and increasing part of your business done online or you’re dying.

Grouse

Markets evolve, adjust and correct. There will always be mom & pop stores and brick and mortar, always. If you asked me 5-10 years ago my outlook would have been more gloomy for brick and mortar.

The only fishing stuff I buy online are when I am restocking a lure of a particular brand, size and color I have used.

The other case is if I can’t find it at a brick and mortar store, which happens a lot. Most stores, including big box stores, only carry a minority of all the tackle and gear out there.

I like being able to hold and compare the product before purchasing. This is especially true of new lures. I can tell you that buying a lure from a store is a lot more gratifying than checking out online and waiting for a delivery.

I suspect a lot of online buyers used to buy through catalogues.

I really like buying from bait shops and smaller stores. If someone could figure out a business plan of a small shop with a tackle warehouse type inventory, that would be awesome.

But that’s me.

Being old enough to remember when the hardware store had EVERYTHING, I’d bet that the retail stores today have a small fraction of the inventory selection of my youth. That is what has killed brick & mortar store shopping for me.

There are certainly those who prefer to spend a few extra bucks in order to keep business local or because of better customer service. The truth is that most consumers demand lower prices. Big box stores and the likes of Amazon have simply figured out how to deliver goods at a lower price. In other words…they are providing what consumers demand. Offering a product at a price that is less than your competitors, yet still remain profitable is not greed, its good business. Sporting goods stores that put clothing front and center are doing that because selling clothing makes them more money that fishing gear. Big box stores, small ma and pop shops are all in it for the same reason…to make money. Its not greed, its the reason for being in the business. The business landscape will always be changing. The successful companies figure out how to adapt. The shops like Thorne Bros. have figured it out and are succeeding. Local shops have to find a niche that drives people to their door. That will allow them to sell the commodities like fishing tackle at a competitive price and make their money on whatever that niche is.

mplspug wrote:

I really like buying from bait shops and smaller stores. If someone could figure out a business plan of a small shop with a tackle warehouse type inventory, that would be awesome.

But that’s me.

Me too…

SuperDave1959 wrote:

Being old enough to remember when the hardware store had EVERYTHING, I’d bet that the retail stores today have a small fraction of the inventory selection of my youth. That is what has killed brick & mortar store shopping for me.

Oh sure, I almost did forget. Anyone remember Coast to Coast Hardware? They did have everything including an entire section devoted to fishing and outdoor sporting goods. I remember buying lots of fishing gear there as a kid. Could ride my bike down there and spend an entire afternoon. Pickup up a couple Dardevles, maybe a floating Rapala and then over to the candy section for some jawbreakers, giant sweet tarts, and some rope bubble gum. Then maybe over to the magazine aisle hoping to sneak a peek at a Playboy.

Jon Jordan wrote:

Not sure how valid the argument is here. Went to Gander 5-6 times over the “Going out of business” sales. Never found any deals. In fact, a few items I did buy ended up being over priced anyway. Got the shaft as all those buys were no return – all sales final. Fleet Farm and Cabelas were already competing for that business.

-J.

X2 We went into the Woodbury Gander several times and always walked out empty handed. The prices were high and the selection was very limited. For example, $139 for a Muck boot that was $115 at Cabelas. So no sale.

I would absolutely hate it if it all goes to the internet. There are too many things I need for my fishing that I need to look at before I buy it. No two Bucktails are the same. Saddle hackle quality is all over the map, same with Marabou. Ordering natural materials online is a real crap shoot.

SR

I don’t think they were having issues with sales because of the Gander deal, they are losing out to online orders. Simple as that. There are so many online retailers that offer free shipping why drive around trying to find that one lure, rod, etc when you can find it online CHEAPER, no sales tax, and have it in a couple days?
I like the local guys, but there are just certain things that I never get from them because they do not have selection or price is prohibitive.

Hey, the silver lining is you could live in La Crosse Wisconsin, a town of 60,000 people. A town with literally no brick and mortar stores!

troutbum wrote:

Joes Sporting Goods is always busy. Their sales personnel are knowledgable and helpful. They are more expensive than the competition and their customer service justifies their pricing.

I have never found them more expensive – the only reason I dont like going to joes is because I see how much less I could have spent on something. Their online prices do not reflect in store prices, and it seems like they always have sales on tons of stuff.

From what I understood, it was select gander stores that had additional inventory brought in. I know the waukesha, wi store did. Also, the liquidation pricing was all over the place. I saw the same items priced different on the same day in different stores.

Appreciate everyone’s candid comments. Interesting view points from the consumers

Retailers are hurting all over, my brother-in-law works for a wholesale place called Maurice’s, which according to him was one of the largest wholesalers of tackle.. they sell to all the places such as Gander Mountain, Scheels, Walmart, Shopko, etc.,. He got laid off for good last spring along with about 40 salesman that worked under him…

Randy Wieland wrote:

From what I understood, it was select gander stores that had additional inventory brought in.

I know they did in Eden Prairie, and it wasn’t all outdoors related. I went in a couple times just to see if the deals improved, and they generally didn’t but the shelves were getting restocked with random stuff/junk.

It will be interesting to see where retail goes, as I think there will always be demand to have something right now as well as to see things in person and put your hands on it before buying.

As far as the Mom and Pop shops, that is where I get 95% of my tackle from. Even if I don’t have a huge need for something, I will stock up as these shops add a lot of value to my experience and I want them around.

Current environment makes it tough for mom & pop stores to survive. As you know Randy, the margins on tackle is small compared to other items and will only get tighter with the large online companies being able to buy in volume and control the supply chain.

The main reason that all the big box stores keep clothes up front is the margin on garments is huge, at least 50%, and that $$ volume helps keep the lights on. It’s also the main reason why the milk is in the back of the grocery store, you have to walk by/through all the profitable stuff before you get to the specialty items you are really there for.

There will always be a market for the mom & pop stores of all varieties, economics out of their control will determine if they can stay viable.

Think about the demographics though. The bulk of fisherman are older and who already have a large collection of tackle. The only reason those guys need to buy large quantities of tackle is if they get into a new area of fishing they hadn’t already been (salmon, sturgeon, muskies, etc). Otherwise, how many more rapalas is a guy going to buy? How many more jigs? Most of us have plano boxes just full of all of this stuff in every color, shape, and weight.

When you have fewer young people getting into the hobby, there are fewer people building their tackle collections. And they might be getting some tackle passed down to them from their older family members.

Polak wrote:

Retailers are hurting all over, my brother-in-law works for a wholesale place called Maurice’s, which according to him was one of the largest wholesalers of tackle.. they sell to all the places such as Gander Mountain, Scheels, Walmart, Shopko, etc.,. He got laid off for good last spring along with about 40 salesman that worked under him…

Maurice has their own issues that resulted in the layoff.

Yes, I heard something close to bankruptcy with them also..