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Cabela's cuts back in 'efficiency' move

Cafe will close, second floor will merge with first

Cabela's customers in Hoffman Estates have until the end of the month to kill their crave for a venison sausage, because the store's cafe will close as part of a remodeling plan.

Interior work will start on Jan. 25 and finish in April at the store at the Prairie Stone Business Park near I-90 and Route 59.

The moves are an attempt to make customer service "more efficient," Cabela's spokesman John Castillo said. The sales floor will be nearly cut in half to 110,000 square feet, as all second-floor departments, like hunting and guns, will move downstairs.

The chain's stores built after 2007 have been smaller, and moving the merchandise will reflect that trend, Castillo added. "Temporarily reducing our footprint will allow us to run our store in the most cost-effective way," he said.

Crews will hoist curtains to cover the barren second-floor space, but the top floor will remain open so visitors can peer down at the 26-foot tall fiberglass mountain on the first floor or check out the African diorama on the second floor. The curtains could be lifted in the future if sales pick up, Castillo said.

Castillo stressed the word "efficiency" and said the goal was to ensure the store's long-term success in Hoffman Estates. Merchandise selection will remain the same. The chain has never closed a store in its 47-year history, he added.

"The Hoffman Estates store is a very important piece of our retail division," he said.

The 195,000-square-foot store opened in September 2007, the first branch in the Chicago area. The store was a departure from the chain's strategy that avoided locations near urban areas favoring rural settings. A month later, Cabela's opened a branch in Hammond, Ind. That store doesn't expect to see any work, Castillo said.

The Hoffman Estates store's second-floor cafe, which featured game fare, will close, as will the games area and shooting gallery.

Construction should take place at night during nonbusiness hours, so the store will continue normal operations, Castillo said.

The store currently employs about 200 and Castillo said staffing would be "minimally affected," by the construction. Workers at the cafe will be shuffled to other posts within the store.

Hoffman Estates gave Nebraska-based Cabela's a maximum $18 million in revenue-based incentives to build the $32 million store and expected $2 million in annual sales-tax receipts. Cabela's officials would not reveal how the store has performed, but the remodeling plan is an indication that it has not hit projections.

The village doesn't provide a sales-tax breakdown for specific businesses, but officials project $6.3 million in total sales taxes in 2009, which is down from the $7 million collected in 2008. Village officials won't know the 2009 figure until April.

Mayor William McLeod said Cabela's situation isn't unique from other businesses dealing with the slumping economy and he isn't too worried. The company's willingness to spend $1 million on an electronic sign overlooking the Jane Addams Memorial Tollway is an indication of the store's stability.

McLeod said he's happy to have Cabela's built on previously empty land which didn't generate revenue. "I don't think this really is a problem," McLeod said. "It's a great store. It's a great attraction out there. It's a great business to have in our community, and they do produce revenue."