RVBusiness, May/June 2017

department carries both used and new entry level towables and cargo trailers But thats only the tip of the iceberg for St Cloud based Pearson whos been developing his budget model over the past three years We try and keep the budget towables under 12000 so were selling trailers anywhere from 2000 up to 12000 he told RVB On the motorized side we generally like to stay under 15000 Its a concept thats actually worked incredibly well Those are the same units that four years ago we were wholesaling at auctions and discounting out of the main stores We would wholesale 250 to 300 units a year We now retain them and sell them at the Budget Lots and they command more money Along with a Pleasureland RV Surplus Store now under development Pearsons has other plans in the works from which he surmises his dealership could well emerge as one of the countrys front line regional players As for new locations we are actually entertaining an acquisition right now as we speak and were looking at another expansion organically so were not done he reported I fully expect us over the next 24 months to add two to four rolling stock stores Colonial Airstream Lakewood N J one of Airstream Inc s top dealers for the past 11 years and now New Jerseys top motorhome retailer specializing in an array of Class B brands has experienced such a good run lately that its time to move the dealerships sole 30 employee store announced Jim Lenzo co owner of Colonial Airstream along with his brother John This year we are already seeing in the Could Camping Worlds Gander Mountain Acquisition Amount to CWHIs Biggest Expansion Move in Years M A Y J U N E 2 0 1 7 RVBusiness 75 Camping World Holdings Inc s CWHI dealer network following a rapid series of acquisitions that the Chicago based firm has pursued since going public last fall has reached a total of 130 plus U S retail stores And CWHI Chairman CEO Marcus Lemonis has made it known that theres more to come including a multi store Michigan acquisition Never in the industrys history of course has any one dealer group rolled up this kind of retail market share estimated at 22 of the U S market Indeed few would argue with the statement that CWHIs Lemonis has personally gone a long way toward reshaping the market as we know it by accumulating so many stores many of them former family held operations undergoing generational transitions In so doing CWHI has essentially turbocharged the consolidation of the North American RV retail arena just as RV manufacturers and suppliers have done in their respective wings of the industry And Lemonis whose parts and accessories business is still located in Camping Worlds original home ground of Bowling Green Ky will apparently continue to serve as a catalyst for change judging by late Aprils breaking news announcement that a CWHI led consortium of investors had won a 390 million bid in a bankruptcy auction for certain assets of sporting goods retailer Gander Mountain Co and marine centric Overtons Inc CWHI which posted a 108 hike in 1Q revenues ending March 31 on sales of 8838 million apparently has plans to operate as many as 70 of the 126 Gander Mountain locations This latest news alert some industry insiders point out could be a real game changer After reviewing the stores in more detail since our successful bid in the bankruptcy process our current goal is to operate 70 or more locations subject to among other things our ability to negotiate lease terms with landlords on terms acceptable to us and approval of the Bankruptcy Court stated Lemonis in a May 8 release The current liquidation of the existing Gander Mountain inventory will allow us to start with a clean slate of what we consider the appropriate mix and level of inventory including the addition of Camping World and Overtons offerings where appropriate While the acquisition of Gander Mountain and Overtons would likely yield millions of e commerce customer contacts through which Camping World could offer our complementary portfolio of services protection plans products and resources it could also put Camping World and Lemonis at the forefront of an emerging political movement in which elements of the RV arena have been working more closely on a political plane with their recreation minded allies in the marine sportfishing archery firearms and other related business sectors as part of an emerging Outdoor Recreation Industry Roundtable From a competitive standpoint moreover the Gander Mountain development raises some intriguing questions with regard to the branding and product mix of these new sibling companies questions for which Lemonis whos gained considerable national notoriety over the past couple of years as host of CNBCs The Profit reality TV series was unavailable for comment RVB Marcus Lemonis Budget Lots have been serving Pleasureland RV very well as the dealership is eyeing significant expansion plans Colonial Airstreams John and Jim Lenzo