The question “How many Camping World stores are there?” may be a common one in the outdoor lifestyle industry, but the company is making some tough decisions about the future of the brand. Recently, the company announced plans to close at least thirty-two stores that don’t sell RVs and plan to open 20 or more greenfield locations. The company will also sell off many of its other outdoor assets, including Gander Mountain.
In an effort to expand its footprint, Camping World has acquired the Tom Raper RV dealership chain in Ohio and the city of Richmond, Indiana. As part of this acquisition, the two companies will combine their strengths, offering a one-stop shop for RV shopping and maintenance. The company also provides Good Sam members with technical tips, extended warranties, magazine subscriptions and roadside assistance. In addition to the stores themselves, Camping World is partnering with Good Sam to offer RV insurance and roadside assistance.
This RV manufacturer has over 180 locations in the United States and has expanded its business into various outdoor lifestyle products and services. It offers RV parts and services and operates over a hundred SuperCenters across the country. Members of the Good Sam Club can enjoy a variety of member benefits, including discounts on camping gear, insurance programs, and other products. The company also runs a peer-to-peer RV-rental service. It also recently launched Electric World and ATV rental services.
While the company is growing, it does not have an insurmountable economic moat. Despite having 180 locations in 46 states, competition is thriving in the RV industry. While large chains like Camping World are better positioned to compete with smaller companies, smaller RV dealers offer more specialized products and services. As such, Camping World is ripe for a merger, but a sharp rise in interest rates and continued high fuel prices could dampen the trend.
While Camping World has experienced recent challenges – negative customer reviews and media campaigns, poor service, and unsatisfactory service – the company’s stock has grown despite these problems. The company’s recent financial performance is also a cause for concern. It has received numerous lawsuits, and its reputation has slipped in the process. However, the company’s success does not appear to have affected its revenue growth, so the company has to work harder to improve its image.
Plans to open 20 or more new greenfield locations
The owner of the nation’s largest RV retailer, Camping World Holdings Inc., is expanding its national footprint aggressively with plans to open 20 new greenfield sites and acquire several others over the next three years. The company continues to seek sites in key markets, including San Martin, Calif., Billings, Mont., Mesquity, and Lincoln, Neb., as well as St. Albans, Vt.
This expansion strategy is driven by the fact that the company’s per share EBITDA has grown at a nearly 20 percent compound annual growth rate, from $108M in 2000 to $670 million in 2016. In fact, the company’s CEO, Marcus Lemonis, started out in the auto industry before moving into the RV dealership business. In 2001, he became CEO of Camping World’s dealership group and has steadily expanded the company organically and through M&A. In fact, Lemonis owns 40% of the company, which is a testament to his ability to grow the business.
With over 180 retail/service locations and an online presence, the company’s growth strategy has been fueled by a focus on increasing customer convenience and reducing costs. While a smaller, more localized model may be easier to operate, large-scale retailers are increasingly becoming more competitive. As more consumers are traveling longer distances to visit camping destinations, the need for new locations is greater than ever. Camping World plans to open 20 or more greenfield locations to expand its footprint and increase customer convenience.
Plans to close 27 to 37 stores that don’t sell RVs
In the past year, shares of Camping World Holdings, Inc. have lost 40 percent of their value. The company recently announced it plans to close up to 27 to 37 stores that don’t sell RVs. The move comes as the company has a huge financial burden and faces the prospect of a major economic recession due to COVID-19. But the company isn’t facing bankruptcy yet.
The company operates 227 locations and has 165 RV dealerships. Since Jan. 1, 2018, it opened 30 dealerships. The remaining stores are outdoor lifestyle stores. Of these stores, 13 have been divested or closed. In the last year, the company has spent about $100 million on buying and selling outdoor retail outlets. The company is evaluating the impact of the plan and may close the remaining locations.
The company also owns Gander Outdoors and has plans to sell the remaining stores. However, it has said that it plans to focus on selling RVs in the future. The company’s CEO said that the new focus would be on selling RVs. However, the Marquette store doesn’t seem to sell RVs. A message left at the store didn’t respond to requests for comment.
The RV industry has too many options and is at risk of collapsing. This has to change. More consolidation, centralization, and less choice will make the industry more efficient. More attention is needed to high-end RV shoppers and lower prices should be the goal. So, what should you do now? How to stop the decline of the RV industry? Let’s look at some common mistakes made by RV owners.
Plans to buy Gander Mountain
In the wake of the recent bankruptcy filing of Gander Mountain, Camping World CEO Marcus Lemonis revealed plans to add RV dealerships to its locations. He called this project “Gander RV.” The announcement came at Baird’s 2018 Global Consumer Technology and Services Conference. Earlier in the year, Camping World acquired the boating and camping businesses of Overton’s and Gander Mountain, but he did not purchase the company’s inventory.
The acquisition of the Gander Mountain brand by Camping World Holdings Inc. is a major step forward in the company’s expansion plans. It has pledged to open 69 Gander RV Sales locations across the country by May 2018. The company has also announced plans to open additional Gander Outdoors locations in the future. The new owners are expected to expand aggressively across the country. It’s not surprising to learn that the company’s plans to expand its retail business in the RV market have shifted from the original plans to include more Gander stores.
The proposed acquisition will include 80% of the stores in Gander Mountain. Bloomberg News reported that Sportsman’s Warehouse is interested in purchasing the company. Currently, the company has almost 80 locations in 22 states, mostly in the western U.S., with some locations in the mid-Atlantic region. Gander Mountain stores are located in the east. However, Sportsman’s Warehouse has increased its revenues in recent years.
Lemonis has publicly stated that he plans to buy the company. Moreover, he has also warned West Marine that he was coming for them. In addition to purchasing Gander Mountain, the company plans to streamline its inventory selection. In addition, the company expects to see a $35 million boost from the restructuring and realignment of inventory. So, while there are concerns, the overall plan is still promising.
Plans to buy Lee’s Family Trailer
Plans to buy Lee’s Family Trailer at the popular RV dealer are in the works. The Windham, Maine business will expand its sales lot by nine acres. The company sells and services various types of RVs, including fifth wheels, which are towed by a connection in the cargo compartment of a pickup truck. Owner Alton “Lee” Gardner opened Lee’s in 1984. He sold the company to Dan Craffey a few years ago. Craffey owns grocery stores in Maine, including Lee’s Family Trailer, but could not be reached for comment.
The deal will close in April. In the United States, Camping World currently has a presence in every state except Rhode Island. However, the company has yet to announce brick-and-mortar plans in certain states. This deal will help the company expand its retail footprint in Maine, where it has not had a presence for many years. Camping World will also offer a wider range of recreational vehicles and outdoor products.
In 2016, Lee’s Family Trailer sold nearly $40 million worth of recreational vehicles. The sale is expected to close in April, and the company plans to rebrand the Maine location and open at least one more. Camping World Holdings Inc. is a national RV retailer with more than 170 locations in 37 states. The sale will be the largest in Maine for a single company, and it will be the first location in the state.