From The Morning Call
Small stores in Hamburg look to Cabela's for success
Neighborhood businesses plan
to capture some of the giant retailer's shoppers.
By Christian Berg
Of The Morning Call
May 16, 2003
Mike Heckart doesn't have a lot of patience with Berks County residents who
complain about Cabela's outdoor superstore and the estimated 6 million tourists
it will draw each year.
Heckart owns Miller's 5&10 in downtown Hamburg, just a couple miles from the
225,000-square-foot Cabela's store going up in Tilden Township. While some see
Cabela's bringing crowds and traffic to this borough of 4,000, Heckart sees a
needed infusion of customers.
''Let's not be kidding ourselves,'' he said. ''This town was slowly fading away.
A lot of the industry has shut down and, quite frankly, Cabela's was the shot in
the arm that everybody needs.''
Heckart is one of many small business owners in Berks and Schuylkill counties
who hope to capitalize on Cabela's arrival. More than 200 of them attended a
Wednesday night workshop at Hamburg Area Middle School, where economic
development officials gave them tips on making that happen.
''This is a tremendous opportunity,'' said Bruce Sommers, a business consultant
at the Kutztown University Small Business Development Center. ''You just need to
sit down and think creatively about how you're going to expand your business,
transform your business, or maybe get into a new business altogether.''
For Vernon Kleckner, owner of Appalachian Outfitters in nearby Port Clinton,
that means getting out of the bow hunting and fishing equipment business and
focusing exclusively on canoeing, kayaking and backpacking.
Kleckner, who has been in business for three years, is certain that Cabela's
will steal some of his sales, but he hopes a new advertising campaign will lure
shoppers looking for expert advice, local knowledge and rental equipment.
''If I could pull half a percent of 6 million, that's 30,000,'' Kleckner said,
''and that's plenty enough for me.''
Officials who spoke at Wednesday's workshop said that besides adapting business
plans, community groups could band together and promote the region.
Such efforts are under way, including the development of a Hamburg area Web site
and a monthly tourism magazine that will be handed out at Cabela's, local
hotels, restaurants and other locations.
''We've just got to all work together, and it will be great,'' said Mark Geiger,
co-president of the Greater Hamburg Business Association.
Cabela's is scheduled to open Sept. 17, and Heckart is preparing. If the
forecasts are accurate, the store will become one of the state's leading tourist
destinations, outstripping sites such as Gettysburg and the Liberty Bell.
So far, Heckart has increased employment from six to nine, extended his hours
and put up a billboard on nearby Route 61.
''You've got to let 'em know you're here,'' said Heckart, whose store offers
more than 9,000 items, including souvenirs and 18 flavors of ice cream.
He realizes it might seem overly optimistic to prepare now. But he has heard
stories about the impact Cabela's had in other small towns, such as Dundee,
Mich., and Owatonna, Minn., and he wants to be ready to lure shoppers.
''I'm going to snatch a whole bunch of them, and it's not just wishful
thinking,'' Heckart said. ''The small businesses in places where Cabela's opens
double their business the first year, and then double it again the second
year.''
Much of the economic optimism in Berks County is being fueled by Cabela's
officials, who are committed to making sure their store is a boon to surrounding
communities.
''We're the reverse Wal-Mart effect,'' Al Dorn, Cabela's retail promotion
manager, said during Wednesday's workshop. ''We come into an area, and we
actually empower some of the local businesses.''
For example, Cabela's originally planned a shooting range and gunsmithing shop
for its Owatonna superstore. Those plans were scrapped after Cabela's officials
met with a local man who ran a gunsmithing and shooting operation. Cabela's
formed a partnership with the local company.
Another major reason for optimism is that Cabela's has plenty of local
customers. Dorn said more than 193,000 Cabela's catalog shoppers live within 50
miles of Hamburg. Twelve percent of those shoppers spent more than $1,000 last
year.
''We know we already have a real strong loyalty in the area,'' Dorn said.
Roughly 500,000 Cabela's customers live throughout Pennsylvania. As a result,
Cabela's is predicting that the Tilden Township store will have the highest
sales volume of all the company's retail locations.
The Berks County store will feature a 30-foot indoor mountain replica and more
than 100 mounted animals, along with a large stock of hunting, fishing, camping
and other outdoor gear.
Cabela's expects sales at the Berks store to hit $80 million the first year,
possibly rising $10 million a year after that. The store will employ 600 people,
400 of them full time, with a payroll of $12 million its first year.
Officials expect extensive commercial development surrounding the store,
possibly creating an additional 1,000 jobs.
The Tilden store will be Cabela's ninth retail location and its first on the
East Coast. Its other stores are in Dundee; Owatonna and East Grand Forks,
Minn.; Kansas City, Kan.; Prairie du Chien, Wis.; Mitchell, S.D.; and Sidney and
Kearney, Neb. Cabela's is planning a tenth retail store in Wheeling, W. Va.
christian.berg@mcall.com
610-820-6517