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Of the 20 to reopen in November, “a handful” will open with dealerships. Ideally, the company wants locations with enough space for a Gander, Overton’s and RV dealership. Indeed, Lemonis said that the company has passed on some profitable locations in some shopping centers because they would be unable to accompany a dealership. He said the decision was made in part because of the general struggles retail is facing. Said Lemonis, “I’d rather close the store, lose the revenue, re-open a store outside with the dealership and hope I get a fraction of the revenue back and build it over time than sit in the middle of an empty parking lot that I think will be there three years from now.” The stores are expected to be smaller. Said Lemonis, “We believe that the right floor plan is between 30 and 40,000 square feet, not 80,000 to 100,000 square feet.” As far as merchandising, he said the Gander will be “way below market” in guns and ammunition while giving no details on other changes. For the initial 20 Gander stores to open, Camping World has acquired 42.4 million in inventory and those stores are expected to support $22 million in potential EBITDA in its fiscal 2019 forecasts. He stressed that margins in the new Gander locations will be lower than historical levels to drive traffic. Said Lemonis, “My goal is to undercut the competition on the lower level, be very web savvy in terms of our pricing and ultimately do one thing: drive club memberships and add to our database.” Good Sam is being rolled out to Overton consumers next month and will be introduced to Gander customers with the first stores. Lemonis said that one “dilemma” Camping World is facing is holding onto quality employees.
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