The Gander Mountain crash….the reality of it

I went to the new Bass Pro in Daytona. I didn’t know it was an Outpost. What a waste of gas. Their tackle selection was less than my local Dicks and about the same as Sports Academy.

If Thorne Bros, Joe’s or Blue Ribbon, they carry the best of the large companies but more of the specialty manufacturers goods.

That is my pecking order, local privately owned and progressive.

Reeds is disappointing when it comes to fishing. No St Croix and cookie cutter tackle assortment primarily centered on the large conglomerate msgs.

Cabelas and BP are out of the question unless I need clothing.

If I can’t find anything at the local stores I go straight to Tackle Warehouse.

Gander Mountain should have never sold their catalog end,and stayed in Wilmot.I seen the slow fall once they started building stores.

I remember the days when they had more fishing equipment than Cabela’s,and better prices.

milemark_714 wrote:

Gander Mountain should have never sold their catalog end,and stayed in Wilmot.I seen the slow fall once they started building stores.

I remember the days when they had more fishing equipment than Cabela’s,and better prices.

Gander Mountain had little choice at the time. They were unable to keep their head above water. Here’s a historical description of their plight. Furthermore, when they sold out to Cabela’s they had at least a 5 year “no compete” clause. Another interesting tidbit…Holiday Station stores which once upon a time had significant involvement in outdoor sporting goods. Now they have sold out…the Gas/convenience store chain.

In early 1995, with sales decreasing, and Gander Mountain cash needs exceeding the amount of money both from sales and its credit arrangements with banks, the company decided to sell selected catalog assets to Cabela, Inc., a large catalog marketer of hunting, fishing, and camping equipment located in Sidney, Nebraska. For $35 million, Cabela purchased Gander Mountain’s customer list and selected inventory. Still, the company was losing money and unable to meet its debts. As a result, after lengthy negotiations throughout 1996, Gander Mountain management decided to file a joint plan of reorganization under chapter 11 of the Federal Bankruptcy Court. This plan included the sale of 12 of the company’s 17 stores to Holiday Companies, a retail sports store operator, and the agreement to pay Holiday back for the stores when Gander regained its financial health and resumed operations. Until that time, the stores acquired by Holiday would operate under the Gander Mountain name.

Yes and once upon a time Montgomery Wards and Sears Roebuck were the 2 big players in retail. Times change.

Tom Sawvell wrote:

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.

You would probably be surprised that sales in the mens and womens clothing departments triple what is sold in the fishing, hunting, and gun departments nearly every single day. I used to work upstairs at a scheels and we wouldn’t get a third of the number of people upstairs compared to the busy traffic downstairs. Most coming upstairs were just swinging by to look at the animals on the wall or play with all the basketballs and footballs around. Also, for the guys that were only looking for certain fishing/ hunting merchandise, did you ever notice how you had to walk by mens clothing, golfing, boating, sports equipment, and canoes/kayaks before you’d get to fishing? Great in store advertising! I’m not very impressed with the selection that scheels has for fishing, but it beats its only competition in the immediate area, which allows them to stuff more nike/under armour crap downstairs cause that’s where the real money is at. You wouldn’t want to see what those t-shirts are marked up compared to the fishing stuff. Its crazy! Not to keep blabbing on about scheels, but their staff is also extremely knowledgeable about anything outdoors, unlike Gander. They’re training is FAR superior to what gander mountain ever offered. Ganders business model was very similar to Sports Authority. When sales began to dip, their response was build another store. Eventually they had too many stores and not enough customers. You’ve seen the results. Gander had the market for awhile, made a nice little run, but everyone caught up and passed them without too much difficulty.

No, it wouldn’t surprise me a bit. It wouldn’t surprise me a bit either that if all the clothes were moved to the upstairs the people wanting clothes would go right with them.

I’m sure they would, I guess I don’t understand your reasoning on why the fishing and hunting stuff should be moved to the bottom floor then. Are you saying people aren’t aware that scheels has an upstairs full of outdoors equipment? I would think that all customers that walk into that store that hunt/fish already know they have that type of stuff in the store somewhere. Moving closer to the doors wouldn’t do too much, right?

deleted. Double post

Here’s what happened here in town. The flood of 08 took out two small bait shops and the city here and the local guys went without any place to even buy minnows, nightcrawlers were at local gas stations. 6 or 7 years went by with no place to buy minnows, then a small bait shop opened and within a couple months the word spread and now they both get 95 percent of the bait sales, why? Because they have minnows of two sizes, and Rosie’s a pink minnow, plus all kinds of tackle.

I went in a few days ago and they had 500 pounds of sinkers laying on the floor in separate bags. They seen the opportunity and need for the live bait market and stepped in.

The big box stores can’t compete with their prices because the bait shop sells cheaper and makes their money on volume which makes everyone happy, and you don’t have to walk a hundred yards to buy a dozen minnows, out the truck door, walk 50 feet and you got minnows in your bucket, plus anything else.

I think the name of the game is stay smaller and you become more flexible and can ride the market with its demands, at least when it comes to live bait and the hooks, sinkers and a decent lure selection that most guys need.

It doesnt matter what the big box stores do because they are almost always going to be more expensive and they would have to have a better live bait selection which I can’t see happening.

tbro16 wrote:

I would think that all customers that walk into that store that hunt/fish already know they have that type of stuff in the store somewhere. Moving closer to the doors wouldn’t do too much, right?

There ya go thinking again. lol

I’d bet that when the first Scheels was a drop of imagination the vision was to have a store that catered to the angler and hunter/shooter and had a very, very limited involvement in the fashion industry. Has it ever occurred to you that those who “already know they have that type of stuff in the store somewhere” resent having to walk half way thru a clothing store and then go upstairs and into a corner that’s the furthest from the entry door just to get what they want/need? Half of a store’s value lies in how the customer perceives his value to that store and a lot of that perception lies in how handy things are and having what that person needs on hand, visible to see and able to be touched [refer to Steve Roots comment in this thread]. Having to make that hike does not go un-noticed.

When all this clothing, the fashion industry at its finest, gets tossed into a store, why should what put the store in motion in the first place get shoved to the back? Why not put the clothing in such a location that all the women and dudly’s who don’t fish or hunt get to stroll thru the fishing and hunting departments to get to the spandex….and maybe see something there that will help promote either aspect of the sport like having a mannequin wearing a pink camo rain suit and another in pink camo coveralls with little signs that say “found in out full service clothing department on the second floor”. I don’t know about ya’ll, but when I set foot in any store that sells tackle or guns or shooting supplies I tend to know exactly what I want and its a bee-line for that on my list. I might walk thru the fishing department to look for sale items or spend some time walking the aisles of the hunting/shooting departments again looking for bargains, but my focus first is what I came for. Even if Ma is along, its doubtful you will find me looking at anything where there are clothes or shoes. I might make an exception and buy boots at a store like Caelas or Scheels because boots tend to get specialized, but my fashion buying is done at Fleet Farm where I can always find my Dickies and Carharts, and yes they are real fashion statements what with the tags that say so and no they are not pink.

Gander Mountain, Dicks, Sportsman’s Warehouse and may others have sunk after dumping huge investments in the garment industry and a lot of that has been high end, specialized junk, like scent-free camo clothing. I don’t give a rip what they advertise, because unless you’re in a vacuum you’ll still stink to a wild animal and your best friends, and much cheaper by the way, is un-scented soap and un-scented anti-perspirant along with a daily shower, so 95% of that line of clothing can be eliminated from store stock. And the list can go on and on with clothing.

Bottom line as far as I am concerned: if your store started as a fishing/hunting based store, you keep that front and center when people come in the door. Clothes, footwear ball bats, spandex raingear and camo should be behind, over or under that which brought the store into being. That should never not be the focus. When the front door opens and clothing is the first thing seen, that’s when the game changes. Ask Gander [clothes], ask Dicks [golf and clothes] or ask Sportsman’s Warehouse [clothes].

Most people just want to look like they hunt/fish/camp and its a margin gold mine for retailers.

Thus, the famous slogan; “North Face: for Hiking at the Mall”

Tom, don’t just share your knowledge, ideas, and passion for Scheel’s to succeed with us here, share them with Scheel’s themselves! You can be part of the Scheel’s team!

Become an Expert at Scheels

wormdunker wrote:

If Thorne Bros, Joe’s or Blue Ribbon, they carry the best of the large companies but more of the specialty manufacturers goods.

That is my pecking order, local privately owned and progressive.

Reeds is disappointing when it comes to fishing. No St Croix and cookie cutter tackle assortment primarily centered on the large conglomerate msgs.

Cabelas and BP are out of the question unless I need clothing.

If I can’t find anything at the local stores I go straight to Tackle Warehouse.

You do realize that Reeds got in big big trouble with St. Croix, that’s why they aren’t allow to sell them. Reeds in Walker is good place to get tackle, the one by Millacs is a joke.

blank wrote:

Tom, don’t just share your knowledge, ideas, and passion for Scheel’s to succeed with us here, share them with Scheel’s themselves! You can be part of the Scheel’s team!

I’m thinking not.

skinnywater wrote:

“North Face: for Hiking at the Mall”

No wonder why I have not bought anything North Face since 2001.

You do realize that Reeds got in big big trouble with St. Croix, that’s why they aren’t allow to sell them.

Never heard that! What happened?

munchy wrote:

You do realize that Reeds got in big big trouble with St. Croix, that’s why they aren’t allow to sell them.

Never heard that! What happened?

Selling them way under budget and Corporate wasn’t too happy and pulled the plug.

Although Gander rarely was a destination for me, any competition lost is a net loss for consumers. FF, Scheels, Gander, Cabelas, Reeds, etc. all compete for business and in turn give me options and cheaper prices.

The small town bait shops will rarely be a gold mine, but most have carved out a niche otherwise they’d already be closed. The Internet and big box stores selling things online is not a new phenomenon. I do not think the sky is falling for all mom and pop shops. I 100% agree with other posts that state they must offer some unique service to survive. To me, it is all about the information. If im given information of value (best landing, fishing locations, tactics, etc.) I will be a return customer every chance I get despite prices. If I walk into the business and am never addressed or offered even a tiny bit of insight, I’ll think twice about returning.

What I don’t understand about the popularity of outdoor clothing is how so many stores sell it. REI, Eddie Bauer, LL Bean, Cabela’s, Scheels, Dick’s, Gander, Bass Pro, Sierra Trading Post, Columbia, on and on. Just how many places does the urbanite need to buy their Patagonia jacket?

nhamm wrote:

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.

I was up at leech. I always hit shrivers bait. I buy minnows there and pimp him for information. This year I bought a minnow bucket I didn’t need, 4 packs of jigs, and a soda lol.

Am I the only one who shops around for the best deal/price, regardless of where it comes from? I would prefer to support the local/little guy, but if ma and pa mark up the product I am going to buy from the cheapest place I can find.

I buy lots of hunting, fishing, camping and outdoor gear and if i didn’t deal hunt it would really add up!

When you move from a small retailer or a ma & pa things change in your business model. It was easy for Gander back in the day they shared space with the Holiday grocery stores. Just think of the head count generated by the grocery store. If even 5% of customers strolled in the Gander from the grocery side at any time that added up to a bunch of potential sales.

Think what Scheels spends just to open the doors. They spend big per square foot rent prices, the have to pay common area costs (snow plowing, grass mowing ect.) Lots of staff because they always are by a mall entrance. All those costs translate to a big number before generating a nickles worth of store profit. Thats why you have clothes by the entrances. They carry the largest margins, attract the most customers just strolling through. Why do grocery stores all have the dairy departments in the back? Because thats why people come in.

Clothes will never go away, thats where the profit is. If a guy wants tackle skip the corporate stores and hit a ma & pa and pay a bit more. You can’t have things both ways anymore. You either pay a bit more or you put up with the BS of mega stores.

Dutchboy wrote:

You can’t have things both ways anymore. You either pay a bit more or you put up with the BS of mega stores.

I don’t always buy the myth that ma & pa can’t possibly compete with big box pricing. Sometimes it’s just not tru. (Sometimes.) Bought some power pro at Vado’s recently. Cabela’s didn’t carry the test I wanted in their brick & mortar stores and online they wanted $3 more than Vado’s. I wanted the line that day and I had to call around to 4-5 shops but it was worth it.

pool2fool wrote:

I don’t always buy the myth that ma & pa can’t possibly compete with big box pricing. Sometimes it’s just not tru. (Sometimes.)

It all depends on the dealer. For obvious reasons, I must tread lightly with this topic. Some dealer know to capitalize on distributor deals and invest heavily on staple items. The next dealer passing by a booth will say “I can’t sell that”. Insane.

As stated above, big stores come with BIG overhead costs. The 5 to 15% savings they get with huge orders is more than gone when paying for the real estate and holding costs of massive inventories.

The best “ma/pa” dealers I work with develop a great clientele with service first. Then they seek out products that are good value and good margins. As an example, I have a dealer that took one look at the blue Yozuri braid and new that it’s an awesome solution for ultra clear water [ used heavily in the gulf] . They were a hot buy at a dealer show and since he sells lake mi products, they stocked up on 3000 yrs spools. His comment, I want to fill every reel I can

Keppinhiemer wrote:

Am I the only one who shops around for the best deal/price, regardless of where it comes from? I would prefer to support the local/little guy, but if ma and pa mark up the product I am going to buy from the cheapest place I can find.

Of course that is a given when shopping in the metro where there are many competing options in which to choose or when you have ample time to order online in advance for the “cheapest” price…but there can be times when you do not have that option and may need to depend on the locally owned retail outlet. This is more of a factor in smaller communities that happen to be in the primary fishing regions. If they are not supported at all, they may not be there when you need something that day regardless of “best price”. Pay a bit more today and hopefully they will be there tomorrow. Save a buck at the “best price” places and then don’t count on finding a place when you need something that day because they were “big boxed” out of business.

Tom Sawvell wrote:

resent having to walk half way thru a clothing store and then go upstairs and into a corner that’s the furthest from the entry door just to get what they want/need

You do realize you have your panties in a bunch over literally nothing, right? You complained to the general manager of scheels because you have to walk across the store to reach the fishing department? Sure, the general manager wants customers happy but good lord. Cmon!! What will all the middle aged women (60-70% of customers id say) say when they have to walk through the fishing department to go find the clothes upstairs? If they complain, like you, they’ll lose out on A LOT more money from a lack of clothing sales than you buying some power pro and a few jigs. Like I said on a prior post, womens clothing alone outsells fishing, hunting, AND gun sales just about every day of the year. They will cater their wants and needs long before some grumpy guy complaining about taking the extra 50 steps (not including the escalator) to get to his fishin poles.

Oh, and I’m pretty sure scheels began as a hardware like store, sounds like another menards, way back in the day. Not too sure it had much to do with fishing/hunting.

“Tom Sawvell wrote:

….resent having to walk half way thru a clothing store and then go upstairs and into a corner that’s the furthest from the entry door just to get what they want/need”….use the full quote dude, you’ll sound and look smarter.

This is what I wrote….
“Has it ever occurred to you that those who “already know they have that type of stuff in the store somewhere” resent having to walk half way thru a clothing store and then go upstairs and into a corner that’s the furthest from the entry door just to get what they want/need?” and trust me my undies are not bunched. My comments to the management were a result of being asked in a survey how I felt they could improve the store’s service and my reply was how I felt it could happen. Simple. I got a free cap for my suggestion. Maybe you should shop there more often, perhaps even get into a survey. Maybe you’d get some new panties for you ideas. lol

I like having the fishing department in the back of the store. I’m not a big fan of people, and being in the back there is much less traffic and people to get in my way while I’m trying to find things and look at all the new things. I hate when you’re looking at a display and someone budges their fat-a$$ directly in front of me to grab ten things then put them back a minute later.

Many times it’s like being in my own toy store as there is nobody else there and I can wander aimlessly for hours.

Agree with Munchy. Go there on the wrong day and the place is a zoo. Get me as far away from all that.

I’ll “sound and look a lot smarter” he says I worked there for awhile. I have no need to get some free cap. Everything they do in the store is determined by guys well above the general manager of this location. Fact is, fishing is never one of their top sales departments so they dont really give a rats about it. They are actually quite behind on new lures/technology compared to other more fishing dominated stores like cabelas, bass pro shops, etc. Take your business there, im sure theyll do okay without you. Theyve become more of a retail store than a sporting goods store. They’ll follow the money, as they should.