Cabela's to break ground on 1st Colo. store

Site fixes have delayed location in Wheat Ridge

By John Rebchook, Rocky Mountain News (Contact)

Tuesday, November 20, 2007

Crabtree Rohrbaugh & Associates Architects

An architectural drawing of the 185,000-square-foot Cabela's store, expected to open late next year near Interstate 70 and West 32nd Avenue in Wheat Ridge.

Correction

This story should have said that the Coors Brewing Co. is one of the landowners where Cabela's plans its first Colorado store.

the giant hunting, fishing and outdoor gear retailer with almost a cult following - is finally scheduled to break ground on its first Colorado store next month in Wheat Ridge.

The Sidney, Neb.-based chain initially planned to open the store by the fall of 2006, but now expects to open in the fourth quarter of 2008.

The opening of the $40 million, 185,000-square-foot store near Interstate 70 and West 32nd Avenue is two years behind schedule because the company did not anticipate the magnitude of needed road and infrastructure improvements, which will cost about $100 million, according to Wheat Ridge officials. Officials from the company did not return a phone call.

"By this time, we originally thought we would have had at least a year of retail sales under our belt. Certainly, it is just a tough site," Wheat Ridge City Manager Randy Young said.

The Colorado Department of Transportation is paying for a large share of the improvements, with the rest being spread among Jefferson County, Wheat Ridge and a municipal district of the landowners, which currently consist of the Coors Brewing Co. and Cabela's.

The store is expected to boost city sales-tax collections by more than $1 million in its first year of business and create about 400 jobs, said Patrick Goff, deputy city manager.

The delay, however, will allow Cabela's to introduce its "next-generation format" for the new store as well as cut the construction cost by 20 percent to 25 percent.

"The new format will place camping, apparel, footwear and gifts near the entrance in an effort to drive more visits from general outdoor enthusiasts (infrequent customers)," David Cumberland, an analyst in the Chicago office of Robert W. Baird, wrote in a Nov. 8 report about Cabela's.

"Additional merchandising initiatives include ongoing innovation in hunting-fishing and category expansion in soft goods (men's, women's, children's), home furnishings and pet supplies," he said.

Cumberland has a "neutral" rating on the stock.

Tom Mathews, a retail broker with CB Richard Ellis, is not neutral on Cabela's location. He thinks it's terrible.

Several years ago, Mathews showed Cabela's three other sites, which he thought were superior to the one they chose.

"I think Cabela's is going to do fine, but they picked some poor real estate," Mathews said. "Cabela's brand is probably the best as far as outdoor, hunting and fishing enthusiasts are concerned. But retail is an ever-changing market and loyalty can be fleeting."

While the $100 million in road improvements will help, Mathews said Cabela's would be better served by being at the confluence of major highways, such as Interstate 70 and E-470 on the east; I-70 and C-470 on the west; and similar large interchanges with lots of land along north and south Interstate 25.

"The really poor access they have in Wheat Ridge is just stupid," Mathews said.

However, another 200,000 to 300,000 square feet of retail is planned to be built around Cabela's, and that should thrive, he said.

• November 23, 2007

  6:58 a.m.

  Suggest removal

  marqueri writes:

  I am frequent customer of Cabelas, and have done most of my purchaces on line. However there are those purchaces I have visited the store for, such as outdoor foot wear. Cabelas is such a mogul in the the outdoor merchandising industry, I don't believe location they've chosen will effect their sales in the least. Let's face it "Their in Nebraska", and doing outstanding! Their location is on the way to the Rocky mountains (1 mile off I-70), and thry'll pick up a lot "on the way" business. Sounds like Mr Mathews is more upset Cabels didn't select "his" location. I guess time will tell.

  Richard the outdoorsman

• November 23, 2007

  2:02 p.m.

  Suggest removal

  JIMMYD writes:

  John: Cabela's....the rest of the story. From the beginning Cabela's said we will not build until there are convenient accessess to our property, so.....guess what the taxpayers paid 100 million so that one company would benefit. Wheat Ridge and Cabela's said this would be at little or no cost to taxpayers but if you check you will find that Cabela's was given enough tax breaks for a long enough period of time so they will not have to pay anything. The highway project was not even scheduled to be done this year until Cabela's pushed the improvements through. Also how can Colorado justify spending this kind of money when not too long ago by their own admission there was not any money to pay for repair or replacement of the many bridges in Colorado that are fast becoming a safety hazard. At one time I would spend time at Cabel'a is Nebr. during my trips northeast but never again and as far as Wheat Ridge is concerned I only shop there when I have to and when I get some accounts moved I will never spend money in Wheat Ridge again. Wheat Ridge and Cabela's have deceived everyone by giving them no choices in the matter except where do you want the property accesses.
  Jim Durant
  Golden, Colorado