Plain Talking On Root Details In Shopping Sites

Jun 11, 2017

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As retail stores close, where are the jobs going?

Non-store retailers, such as Amazon, run establishments classified as distribution centers, and can augment their workforce with employees from temporary help agencies. Amazon employs more than 7,500 full-time workers in New Jersey in seven fulfillment centers. In Pennsylvania, the majority of warehouse jobs are in the Lehigh Valley to staff new facilities, according to commercial real estate firm CBRE Inc. Total warehouse jobs have spiked 38 percent over the last five years, reaching 75,354 last year, state records show. The Philadelphia region is perfect for distribution centers serving the East Coast, noted Ken Perkins, president of Retail Metrics Inc. Fulfillment jobs are helping offset store job losses, he said, "but will not be enough to make up for broader losses in the industry," as chains keep cutting stores and employees [Target, Kohl's] and robotics are introduced. Perkins said retailers will need to step up their online game to compete with Amazon's coming one-hour delivery and its potent two-day Prime delivery (for paying members). "Many chains are still taking four to seven days on delivery, which is way too long," Perkins said. Amid the retail carnage, trendy eyewear company Warby Parker, which began online, has been adding stores aggressively.

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With Camping World, the company has a strong reach into camping and RV customers and marine customers were seen as a natural extension. Said Lemonis, “That doesn’t mean ‘sell boats.’ It means services and communicating with boaters who already own a boat who need aftermarket products.” In acquiring Gander Mountain, Camping World, which went public in October, is adding 3 million customers who “hunt, fish and camp” to its database. That will open up opportunities to sell RVs or a truck camper, as well as club memberships that provides a discount on fishing or hunting gear, a store credit card, as well as ancillary services such as roadside assistance. Overall, Lemonis said Camping World doesn’t view itself as an RV retailer but “as a data mining company” and one that “focuses on how to control the consumer inside the RV and outdoor leisure space.” Through its dealerships, service departments, parts and accessories stores and outreach to its call centers, Camping World is aiming to sell and cross-sell its Good  Sam offerings. Said Lemonis, “So every transaction that we make and every transaction that we do is generally with the sole purpose of driving that database.” He said another unusual trait with the company is its focus on return on capital and preserving its EBITDA margin rather than growing revenue. Lemonis said Camping World’s EBITDA margin “far exceeds most if not all” of the public auto dealerships and that’s driven by its database mining model. EBITDA on the Good Sam business will reach about $80 million this year, up from $78 million the prior year. And while it generally sees “low and steady growth,” profits also don’t markedly drop during downtimes. Said Lemonis, “That really is our ATM machine.” As far as Gander Mountain, Lemonis said Camping World is already well on its way on its plans to restore profitability. “What killed that business was massive corporate overhead, an undisciplined inventory process, an inefficient logistics and transportation process and the stores being built too big with too high rent factors,” said Lemonis.

For the original version including any supplementary images or video, visit https://sgbonline.com/camping-world-will-seek-to-undercut-competition-with-new-gander-stores/

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