Photo Courtesy of Cabela's Inc.Cabela’s, the outdoor retailer, has curtailed its plans to open a store at the former Betco Block Plant in Gainesville, citing the disappointing performance of it’s new U.S stores.
Prince William Board of County Supervisors Chairman At-Large Corey Stewart confirmed the report.
"It is a corporate decision not to proceed with new stores across the nation due to declining profits," he said.
Approximately a year ago, Stewart announced that Cabela’s, which he lauded as “more than a retail store,” would build a 79,000 square-foot location as part of the Virginia Gateway retail center.
However, due to poor third quarter earnings performance, the Sidney, Nebraska-based company has announced it will slow new store development and expansion plans.
“Our new format stores continue to significantly outperform our legacy stores in sales and profit per square foot, yet our U.S. stores opened in 2015 have underperformed our expectations,” Cabela’s Chief Executive Officer Tommy Millner said. “Accordingly, we are evaluating our 2016 and 2017 store opening schedule. At this time, we plan to open seven stores in 2016 and no more than that in 2017. We have a number of initiatives underway to improve new store productivity and profitability, which gives us confidence in our long-term goal of 225 stores in North America.”
The store, which the company had planned to open as part of the Virginia Gateway retail center by the spring of 2017, would have employed approximately 190 people and draw shoppers from D.C., Maryland, Northern Virginia and West Virginia.
The developer has not publicly commented about future plans for the property.
Bristow Beat will provide more information as it becomes available.
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