Dive Brief:

• Under activist investor pressure, Cabela’s is moving to explore a sale, although the board hasn’t authorized a strategic review or issued a buyers mandate, sources told Bloomberg.    

• Privately held Bass Pro Shops is looking into the idea of acquiring Cabela’s, Reuters reported earlier this month.

• Cabela’s sales have slumped as a surge in gun sales has fallen off. It is scaling back its expansion plans after discovering that its new superstores are taking sales from existing ones, with same-store sales falling 4.2% and profit dropping 19% in the most recent quarter.

Dive Insight:

Activist investor Elliott Management last month disclosed an 11% stake in Cabela's and is said to be urging a sale or other ways to unlock value in the struggling retailer, including a real estate sale or spin-off of its credit-card business. 

There’s a lot of overlap in the two companies — both are known for their big, destination-like stores focusing on all things outdoors. Cabela’s stores are known for having taxidermy, shooting galleries, and other tourist attractions, and the company also runs a lucrative credit-card business. Bass Pro Shops in some stores runs wild game and fish restaurants. Both operate stores in the U.S. and Canada.