Camping World Holdings (NYSE:CWH) announced the acquisition of another future retail supercenter today, bringing its total to four in Ohio and approximately 160 across the United States. The purchase is part of the company's strategic growth plan, building on its succeses this summer.
Driven by the pandemic's closure of recreational activities like cruises, casinos, and waterparks, Americans bought RVs at a pace not seen for 40 years, sending RV unit sales up 53.3% year over year, according to the RV Industry Association (RVIA). Sales are projected to climb 19.5% higher next year.
Camping World's third-quarter 2020 sales rose 21%, and the company is using its cash windfall to invest in itself and boost retail outlet numbers. Today's purchase of Paul Sherry RV in Piqua, Ohio, is part of this plan. CEO Marcus Lemonis said the move "aligns with our strategy to expand into new markets" and will "grow our presence in the greater Dayton, Ohio" area.
As a Camping World SuperCenter, the RV outlet will not only sell new and used motorhomes of various types, but also offer parts, accessories, servicing and repair for RVs and other "outdoor lifestyle products."
The acquisition is not an isolated action. Last week, it purchased the All RV Needs dealership in South Medford, Oregon. Two weeks ago, it bought four Minnesota dealerships from Noble RV, doubling its supercenter presence in the state.
While Camping World's aggressive acquisition strategy is costly, it appears to have both the liquidity and the strong future growth prospects to make it work. The company is also doing well enough to pay three dividends to shareholders this quarter.