Gander Mountain Company is a specialty retailer offering an assortment of merchandise that caters to the needs of outdoor lifestyle enthusiasts, with a particular focus on hunting, fishing and camping. The Company's stores offer assortments of outdoor equipment, accessories, related technical apparel and footwear, featuring national and regional brands, as well as its owned brand, in addition to related services. The Company's core strategy and focus is to provide its target customer with a retail experience founded upon its We Live Outdoors culture and theme. As of January 28, 2006, the Company owned and operated 98 stores in 18 states: Arkansas, Colorado, Illinois, Indiana, Iowa, Kansas, Kentucky, Maryland, Michigan, Minnesota, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Texas, Virginia and Wisconsin. Hunting is the Company's merchandise category, representing approximately 42% of its sales during the fiscal year ended January 28, 2006 (fiscal 2005). The Company's hunting merchandise assortment provides equipment, accessories and consumable supplies for virtually every type of hunting and sport shooting. Gunsmith services and archery technicians support the Company's hunting assortments to service the complete needs of the hunter. The Company's hunting assortment includes a variety of firearms, including rifles, shotguns, handguns, air guns and black powder muzzle loaders. The Company also buys and sells used firearms. It also carries a selection of products in the ammunition, hunting equipment, optics, dog training, archery and food plots/feeding categories. Fishing and marine merchandise represented approximately 16% of the Company's sales during fiscal 2004 and includes products for fresh-water fishing, salt-water fishing, fly-fishing and ice-fishing. Its assortment appeals to the beginning angler and the weekend angler, as well as avid and tournament anglers. In addition to lures, rods and reels, the fishing and marine assortment features a selection of products in the tackle supplies, electronics, fly-fishing, ice-fishing and marine accessories categories. The Company also provides line winding services in all of its stores and lives bait in most of its larger format stores. Camping, paddlesports and backyard equipment represented approximately 7% of the Company's sales during fiscal 2005. The Company's camping assortment primarily focuses on family camping and the weekend hiker and includes the camping, paddlesports, backyard cooking and entertainment and food processing product categories. The Company's apparel and footwear product categories include both technical gear and lifestyle apparel for the active outdoor enthusiast. Apparel and footwear represented approximately 26% of its sales during fiscal 2005, and the assortments in these categories include fieldwear, sportswear and workwear. Fieldwear apparel and footwear offer technical performance capabilities for a variety of hunting activities, including upland, waterfowl, archery, big game hunting, turkey hunting and shooting sports. Performance attributes include waterproofing, breathability, temperature control, scent control, quietness control and visual capabilities, including camouflage and blaze orange. Outerwear, particularly performance rainwear, is an important category for customers who are fishing, hiking, hunting or marine enthusiasts. The Company's larger format stores carry an assortment of all-terrain vehicles (ATVs) and ATV accessories used primarily for hunting and fishing, as well as power tools and boat motors. The Company also sells accessories with each vehicle. These attachments range from simple trailers and blades to expensive cultivators that hunters use to plant food plots for game on their hunting land. The Company's ATV service shops provide a range of services and parts and are staffed with technicians trained for most of the makes and models, as well as other small engines. The Company is testing the sale of three lines of Genmar fishing and family recreation boats, Stratos, Champion and Sea

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