When news broke earlier this week that Bass Pro Shops had purchased Cabela’s for $5.5 billion, the outdoors industry rippled with shock waves.
The two largest outdoor retailers have combined in an unprecedented union just before hunting season. What could this possibly mean for consumers?
Well, to begin with, Bass Pro Shops is promising very few changes to the trusted Cabela’s brands that sportsmen have come to enjoy. So you should be able to still find your Cabela’s GuideWear, for instance.
In a press release announcing the deal, Bass Pro Shops promises to honor your Cabela’s club benefits as well, and it will keep Cabela’s operating bases in Sidney and Lincoln, Nebraska.
In terms of what happens further down the road and what impact the merger may have on prices is yet untold. Acquisitions in general tend to have a negative impact on consumers, as they usually usher periods of less competition.
Recent work by several economists found that large acquisitions had the effect of earning some corporations super large returns and have negatively contributed to the nation’s widening gap in income disparities.
Whether that will be the effect on the price of your fishing reel is yet to be seen.
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