Gander Mountain Bankruptcy

[zmcgooga]

Heard this morning on the radio that Gander Mountain is preparing to file for bankruptcy and it got me wondering.

If they were to close down their stores, not that there is any indication that they are doing that yet, what happens to all of their inventory? Particularly their firearms/ammo inventory, do they just send it back to the manufacturer/distributor or try selling it at a discounted rate?

I'm sure if another company were to buy them out then that is where all their inventory would go. I like Gander Mountain and hope they don't go out of business but on the flip side I also like discounted guns so just wondering if I should start saving now.

http://www.reuters.com/article/gandermo ... SL1N1FV1O2

[EastTexasRancher]

Sorry to see this happen to them, but their pricing model does not make them competitive. I was in one just last Thursday, and everything I looked at I thought "that's $10 cheaper at Academy", "wow, that's high", etc. And I'm talking $39 items. Being $10 higher on something like that...folks just aren't going to buy.

In today's market place, particularly when you're competing against online pricing, there has to be a value to what you are selling, and they just never proved that value to me, and apparently to many others as well.

[mupepe]

Consumers will likely get the assets that distributors or other corporate entities didn't want to buy in bulk from Gander Mountain. What will likely be left are items with lower market appeal and profit margins like clothes and small accessories. And even those will be discounted in steps - marked up to full MSRP and then "discounted" slowly until it's all sold off. Liquidation sales rarely produce bargains for the consumer.

[zmcgooga]

Sorry to see this happen to them, but their pricing model does not make them competitive. I was in one just last Thursday, and everything I looked at I thought "that's $10 cheaper at Academy", "wow, that's high", etc. And I'm talking $39 items. Being $10 higher on something like that...folks just aren't going to buy.

In today's market place, particularly when you're competing against online pricing, there has to be a value to what you are selling, and they just never proved that value to me, and apparently to many others as well.

.. I've only ever been able to find one item cheaper at Gander than Academy, it was a pair of Merrell's for $10 less. On average their firearms are $50-100 more than Academy, I never understood why they thought they could be competitive with those prices.

[OldGrumpy]

They will probably reorganize and come out of bankruptcy. Few companies liquidate the first time they file bankruptcy.

[C-dub]

The one in Lewisville had a big clearance sale going on when I was there two weeks ago, but there wan't anything I was interested in that was on sale. They've always been priced a bit more than everyone else for the same items. I figured it was only a matter of time.

[bblhd672]

Heard this morning on the radio that Gander Mountain is preparing to file for bankruptcy and it got me wondering.

If they were to close down their stores, not that there is any indication that they are doing that yet, what happens to all of their inventory? Particularly their firearms/ammo inventory, do they just send it back to the manufacturer/distributor or try selling it at a discounted rate?

I'm sure if another company were to buy them out then that is where all their inventory would go. I like Gander Mountain and hope they don't go out of business but on the flip side I also like discounted guns so just wondering if I should start saving now.

http://www.reuters.com/article/gandermo ... SL1N1FV1O2

What happens to their inventory depends upon whether or not Gander Mountain remains in business or closes its doors. There may or may not be bargains to be had in the future.

I agree with other posters, I find very little at Gander Mountain that I can't find somewhere else for less. Occasional ammo on sale is my only purchases from there.

[Nuts]

The only things I have bought there where a left hand .22 for my son because they where the only place that had one.

I do buy powder at the one in sugar land. Their price isn't to bad and they always have power pistol in stock when I needed it

[Soccerdad1995]

Personally, I think that all retailers have a limited future as people get more and more comfortable buying things online. A brick and mortar location is just not going to be able to compete with the cost structure and economies of scale that an online retailer brings to the game. Companies that produce things will either sell directly to their consumer, or through large online retailers like Amazon.

To survive, a B&M retailer needs to offer something that a consumer cannot get online. But the opportunity to handle the product isn't enough. Consumers will visit the store to see the product and will then buy it online to save a few bucks. They need to find a more "sticky" value proposition.

[Jusme]

Personally, I think that all retailers have a limited future as people get more and more comfortable buying things online. A brick and mortar location is just not going to be able to compete with the cost structure and economies of scale that an online retailer brings to the game. Companies that produce things will either sell directly to their consumer, or through large online retailers like Amazon.

To survive, a B&M retailer needs to offer something that a consumer cannot get online. But the opportunity to handle the product isn't enough. Consumers will visit the store to see the product and will then buy it online to save a few bucks. They need to find a more "sticky" value proposition.

I agree, especially since they began a "saturation" push a few years ago. They have stores in several places, my guess was to compete with Academy. But like most have said, even their sale prices, are at or above what you can buy elsewhere. They do carry a large selection of guns, but if they are not going to compete on price point, they end up with a huge inventory and very slow sales.

[jmra]

The last time I entered one of their stores was during the great ammo shortage. I stood at the counter and watched the manager pull boxes of ammo out of a Walmart bag and mark them up 300%. IMHO, that mindset has put them in the financial ruin they currently find themselves.

[Soccerdad1995]

Personally, I think that all retailers have a limited future as people get more and more comfortable buying things online. A brick and mortar location is just not going to be able to compete with the cost structure and economies of scale that an online retailer brings to the game. Companies that produce things will either sell directly to their consumer, or through large online retailers like Amazon.

To survive, a B&M retailer needs to offer something that a consumer cannot get online. But the opportunity to handle the product isn't enough. Consumers will visit the store to see the product and will then buy it online to save a few bucks. They need to find a more "sticky" value proposition.

I agree, especially since they began a "saturation" push a few years ago. They have stores in several places, my guess was to compete with Academy. But like most have said, even their sale prices, are at or above what you can buy elsewhere. They do carry a large selection of guns, but if they are not going to compete on price point, they end up with a huge inventory and very slow sales.

Firearm retailers do have a few things going for them. They sell things that you either cannot buy entirely online (guns that require FFL transfer), or that cost a lot to ship in small quantities (powder, primers). If they have a gun range, they also have the opportunity to sell convenience items like ammo and targets at a decent mark-up. Finally, they have a potentially loyal customer base that, at least for now, values personal relationships more than the average consumer, IMHO.

But, they should focus on those things they can do better than an online retailer. Things like running a good quality range where people can have a great experience at a reasonable price. Having a quality gunsmith on site who does work at a reasonable price (and who can install those night sights and other things you buy at a discount if bought on site). Maybe offering free classes for gun maintenance, basic gunsmithing, reloading, etc., which will encourage sales of powder and primers. And of course, on-site LTC classes along with proficiency training. Just ask, is this something that an online retailer can easily do / sell. If the answer is no, that's a good thing to focus on.

[AF-Odin]

Not really surprised. The GM in Killeen was placed in a location that was very "viewable" from the main road artery. Getting to it was not a major issue, but leaving and re-entering the main roadway was a major pain. Might have been worth the traffic inconvenience if their prices were reasonable. Occasionally, they would put ammo on sale for the everyday price at Academy. The one here generally had a wider selection of guns than Academy as well as offering "higher end' firearms, but their prices were astronomical--well OVER MSRP on most. I do not expect them to be a Wal-Mart, but do expect reasonable prices and a willingness to at least try and be competitive in the market. Over the last Christmas shopping time, Academy was ALWAYS packed yet GM had, maybe, a handful of cars in their parking lot. I remember several years ago (late 70 early 80s) I bought several things from the GM catalog because they were reasonably priced.

[Nano]

I was very excited when I learned that they were putting a store in Arlington. After several visits I think I only bought a couple of fishing lures because their gun related items were just to high. I have bought a lot from Academy. GM is the last place I think of locally when I am ready to buy. If they want to stay in business they will have to become a lot more competitive. Off the subject but I can't see how Sears stays in business.