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Outdoor outfitters join hunt for midstate customers in Pennsylvania

Sunday, November 14, 2004
By Ellen Lyon

Lately, it seems as if giant outdoor outfitter chain stores are becoming almost as common in the midstate as whitetail deer.

Last year saw the opening of an 85,000-square-foot Gander Mountain superstore in Lower Paxton Twp. and a 250,000-square-foot Cabela's in Berks County, 55 miles east of Harrisburg.

Now comes a 225,000-square- foot Bass Pro Shops Outdoor World, which opens Thursday at Harrisburg Mall in Swatara Twp.

Are there really enough hunters and anglers to buy all those guns, fishing rods and camo vests?

Clearly, Bass Pro Shops thinks so. They cite hunting and fishing license numbers.

Pennsylvanians hold more than one million hunting licenses, the second-highest in the nation behind Texas, said Pennsylvania Game Commission spokesman Jerry Feaser.

The state ranks 10th in the nation for fishing licenses, with about 1.3 million, according to Fish and Boat Commission spokesman Dan Tredinnick.

Others believe there may be a limit to how much business there is to go around.

"I'm surprised that there's another format popping in, unless they can really differentiate themselves from the competition," said Bob Gorland, vice president of Matthew P. Casey & Associates, which does retail real estate research.

Gorland suggested that Bass Pro Shops could take away some business from Cabela's.

"The store here is at least closer to a major population center," he noted. "It's central to a half-million population within just a 15-20 minute ride, whereas Cabela's ... is really looking for people to make a half-day of it and drive [farther]."

Cabela's officials insist they're not worried.

"We don't see any kind of impact," said Cabela's spokesman David Draper. "The [Pennsylvania] store has generally exceeded our expectations on all fronts. We knew it was going to be a great store for us, but we didn't know how great."

While Draper admitted that Cabela's and Bass Pro Shops have similar customer bases and merchandise, he noted that all 10 Cabela's are stand-alone destination stores, unlike Bass Pro Shops, which anchor malls.

Also, unlike Bass Pro Shops, Cabela's prefers to be outside large metropolitan areas. "That way, they're not lost in the whole urban shuffle," Draper said.

Dunham's Sports' 111 stores are smaller than either Cabela's or Bass Pro Shops. Nevertheless, Bryan Smith, manager of the Dunham's in Susquehanna Twp., said he's not concerned.

Half the store's merchandise is related to field and stream activities. "I'm sure we'll feel some effects on that side," Smith said.

But Dunham's also sells general athletic supplies. And it has a 60-day price guarantee during which time, if a customer finds a lower price, the store will match it or refund the difference paid, Smith said.
For Randy Campbell, owner of Triple Creek Rod & Gun in Spring Twp., Perry County, Bass Pro Shops is more bad news.

"Sure, I'm worried, without a doubt," he said, noting that his clothing sales have dropped 20 percent since Cabela's opening.

"From what I've seen, their prices are really not any better," except on store specials priced below his cost, Campbell said. "I can't compete against that."

The sporting goods industry is "just a monster" in terms of the amount and cost of the inventory that a store must maintain, he noted.

Campbell said he offers to order for customers what he doesn't have in stock "but a lot of them won't wait. They want it now."
So, he resents the state helping two large out-of-state outdoor outfitters come to the area and compete against him. Cabela's received $ 27 million in tax money from state and local municipalities.

The Bass Pro Shops project is getting $ 7 million from the state, most of which will go to local municipalities and authorities for infrastructure improvements, according to Brian Ross, a development specialist with the Governor's Action Team.

But Bass Pro will get a $ 300,000 state grant if it creates at least 200 full-time jobs, with benefits, that pay at least 150 percent of minimum wage, Ross said.

And the company will get $ 1 million in tax credits for those jobs, he said.

General manager Jim Wargo said the Harrisburg Bass Pro Shops will employ about 350 people full and part-time. The pay scale will start at $ 7.50 an hour, but workers with knowledge of the area and the outdoor industry and with retail experience will earn more, he said.

Ross noted that both Bass Pro and Feldman Equities, which owns Harrisburg Mall, have invested significantly more than the state in the project. He estimated Bass Pro's share at $ 31 million.

Spokesman Larry Whiteley declined to reveal Bass Pro's investment because it is a privately held company.

Campbell complained that "you hear all the politicians say we're for small business, and then they do this. It doesn't sit well with me. I know we need jobs in the state, but those jobs are not jobs that pay like the manufacturing jobs do."

Gorland said he also wonders why the state invests in "glorified retail jobs," even if it saves a troubled regional mall, instead of pursuing higher-paying manufacturing jobs.

"That, I think, is a partial waste of tax dollars. I could see giving them some incentive," he said. "Of course, no one wants to see a vacant mall, but there's other marketing tools that can be used."

At least, Gorland noted, Bass Pro Shops is using existing infrastructure rather than building new like Cabela's.
Ross said the Governor's Action Team doesn't do many retail projects, but Bass Pro Shops is a well-known tourist draw and Harrisburg Mall needed help.

The average Bass Pro Shops customer travels 2 1/2 hours, so the Harrisburg store expects to draw from New York, New Jersey, Maryland and Virginia, promotions manager Chris O'Hara said.

Campbell remains hopeful he can keep his business afloat despite the super-sized competition.

"We'll survive, I'm pretty sure, because we're diversified, but it makes it harder and harder for us," he said.



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