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Scheels

Scheels is an American employee-owned sporting goods and entertainment retailer founded in 1902 by German immigrant Frederick A. Scheele in Sabin, Minnesota, with an initial investment of $300 from a potato harvest, and headquartered in Fargo, North Dakota.^[1]^[2] Originally a small hardware and general merchandise store, it has grown into one of the largest sporting goods chains in the United States, operating 34 superstores across 16 states as of 2025, emphasizing a destination shopping experience that combines retail with family-friendly attractions.^[3]^[4] The company transitioned to 100% employee ownership through an Employee Stock Ownership Plan (ESOP) in 1991, after being family-operated for nearly 90 years, and now employs over 13,000 associates who receive annual profit-sharing bonuses based on performance.^[1]^[5] Its stores, often exceeding 200,000 square feet, offer a wide range of products including apparel, footwear, hunting and fishing gear, camping equipment, and team sports items from world-class brands, with expert staff providing personalized service.^[6]^[7] Scheels is renowned for innovative store features such as in-house Ferris wheels—first introduced in 2004—aquariums, arcades, and cafés, creating an immersive environment that has earned it recognition as the "World's Largest All Sports Retailer," highlighted by its flagship 331,000-square-foot location in The Colony, Texas, opened in 2020.^[1]^[8] Under fifth-generation leadership until 2024, when Steve M. Scheel stepped down as CEO and was succeeded by Matt Hanson, Scheels has expanded methodically from its Midwestern roots, opening its first "All Sports Superstore" in 1989 and continuing growth with new locations planned, such as in Cedar Park, Texas (2026) and Blaine, Minnesota (2028).^[1]^[2] The retailer prioritizes community involvement and customer satisfaction, contributing to its reputation for superior service over more than 120 years.^[7]^[9]

History

Founding and Early Development

Scheels was founded in 1902 by German immigrant Frederick A. Scheel in the small town of Sabin, Minnesota, where he purchased a modest hardware and general merchandise store using $300 earned from his first potato harvest as the initial investment.^[1] The store initially catered to the rural community's needs, offering essential goods alongside hardware items to support local farmers and residents.^[10] In 1919, following his service in the U.S. Navy during World War I, Scheel's son, Frederick M. Scheel, assumed management of the Sabin store and played a pivotal role in its early growth. Under his leadership, the business diversified by adding groceries and farm equipment to its inventory, broadening its appeal in the agricultural Midwest.^[1] By 1925, the focus shifted more exclusively to hardware, reflecting strategic adjustments to market demands.^[10] The late 1920s marked significant expansion as Frederick M. Scheel acquired the Moorhead Hardware Company in Minnesota in 1928 and the Swanson Hardware Store in Fargo, North Dakota, in 1929, effectively relocating the company's operational center to the Fargo-Moorhead area.^[10] Amid the Great Depression, Scheels navigated economic hardships by sustaining core operations and pursuing modest growth, including further acquisitions in North Dakota communities.^[1] Family involvement deepened in the 1940s when Frederick M.'s sons—Frederick B. Scheel in 1946 after World War II service and Charles Scheel in 1947—joined the business, enabling openings in nearby towns such as Casselton, Hillsboro, and Fairmount, North Dakota, between 1940 and 1946.^[10] These efforts solidified the company's regional footprint as a reliable hardware retailer by the mid-20th century. This foundation in general merchandise and hardware laid the groundwork for Scheels' later transition toward sporting goods in the 1950s.^[1]

Evolution into Sporting Goods Retail

Under the leadership of the third-generation Scheel family members, including Fred B. Scheel and Charles Scheel, the company began transitioning from its hardware roots by adding a small selection of sporting goods in 1954. This initial expansion focused on hunting and fishing supplies, reflecting growing customer interest in outdoor activities in the Midwest. The move marked the beginning of a strategic pivot, as sporting goods proved easier to sell and more profitable than traditional hardware items.^[11]^[12] By the 1960s, Scheels continued to broaden its product lines in response to increasing demand, incorporating apparel, footwear, and additional outdoor equipment alongside the core hunting and fishing offerings. This period saw the opening of new stores that integrated these categories more prominently, such as the second Fargo location at Southside Shopping Center in 1962, which dedicated substantial space to sporting goods while retaining hardware sections. The expansion allowed Scheels to build deeper inventory in sports-related products, catering to regional interests in recreation and athletics.^[11]^[1] In the 1970s, Scheels adopted a multi-department store model that further emphasized its sporting goods focus, with stores operating semi-independently to tailor selections to local needs while maintaining centralized buying for competitive pricing. This approach prioritized exceptional customer service, including knowledgeable staff and extensive product variety, which helped sporting goods surpass hardware in sales volume. By the end of the decade, several locations had shifted predominantly toward sports retail, solidifying the company's evolution.^[11]^[13]

Expansion into Superstores

In the late 1980s, Scheels marked a pivotal shift toward large-scale retail by opening its first all-sports superstore in Grand Forks, North Dakota, in 1989. Spanning over 30,000 square feet, this flagship location represented a significant departure from the company's earlier smaller hardware and sporting goods outlets, emphasizing a broader assortment of athletic equipment, apparel, and accessories under one roof.^[1]^[10] Throughout the 1990s and early 2000s, Scheels pursued aggressive expansion and relocation strategies to convert traditional stores into expansive superstores, targeting Midwest markets with high demand for outdoor and sporting goods. Notable developments included the 1999 relocation of the Billings, Montana, store to Rimrock Mall, enhancing its footprint and product diversity, and the 2002 consolidation of Sioux Falls, South Dakota, operations into a 109,000-square-foot superstore that unified previous locations for greater efficiency and customer appeal.^[10] These moves were supported by the company's employee ownership model, which incentivized staff involvement in growth initiatives and fostered regional market penetration.^[11] By 2010, Scheels had grown to 23 stores across nine states, solidifying its presence as a major regional retailer through these superstore transformations. A key example of this evolution occurred in 2014 with the relocation and enlargement of the Grand Forks store to Columbia Mall, expanding to 120,000 square feet and integrating entertainment features to enhance the shopping experience.^[14]^[15] This period of scaling underscored Scheels' strategy of combining vast inventory with experiential elements to drive customer loyalty and sustained expansion.^[10]

Corporate Structure and Ownership

Employee Ownership Model

Scheels transitioned to 100% employee ownership in 1991, converting from family ownership to an Employee Stock Ownership Plan (ESOP) under the leadership of fourth-generation family member Steve D. Scheel, who became president and CEO in 1972.^[1]^[16] This shift allowed the company to empower its workforce while maintaining private control without external shareholders.^[7] The ESOP structure operates as a defined contribution retirement plan, where eligible associates—those who have completed one year of service and at least 1,000 hours—receive annual allocations of company shares proportional to their compensation, with vesting occurring over time based on tenure.^[17] These allocations tie employee rewards to overall company performance, fostering a sense of shared success.^[1] As a 100% employee-owned entity, Scheels avoids external investors, enabling decisions focused on long-term stability rather than short-term profits.^[7] Key benefits of the model include substantial profit-sharing contributions alongside ESOP distributions, which have resulted in multi-million-dollar retirement payouts for longtime associates.^[1]^[18] This structure reinforces a collaborative company culture by aligning individual efforts with collective goals, promoting accountability and exceptional customer service among employee-owners.^[17] As of 2025, Scheels employs more than 13,000 associates who participate as owners in this model.^[5]

Leadership and Governance

As of 2025, Matt Hanson serves as the Chief Executive Officer (CEO) of Scheels, overseeing the company's strategic direction and operations across its network of stores. Hanson joined Scheels in 1999 as a part-time cashier at the Mankato, Minnesota location and progressed through various roles in retail operations, including store management and merchandising leadership, before becoming Chief Merchant and Vice President of Merchandising. He holds a Bachelor of Business Administration from Minnesota State University, Mankato, which has informed his focus on operational efficiency and customer-centric growth in the sporting goods sector. Hanson succeeded Steve M. Scheel, who retired as CEO in 2024 after leading the company since 2015.^[1]^[19] Steve D. Scheel, great-grandson of Scheels founder Frederick A. Scheel, has shaped the company's trajectory since the 1970s, assuming roles as President, CEO, and Chairman of the Board in 1972. During his tenure, he guided the transition to a fully employee-owned structure through an Employee Stock Ownership Plan (ESOP) in 1991, which distributed ownership to associates and fueled expansion from a regional retailer to a national chain with more than 13,000 employees. Now serving as Chairman Emeritus, Scheel continues to influence strategic vision while emphasizing a culture of servant leadership and community engagement.^[20]^[21]^[16]^[1] The board of directors at Scheels, a privately held entity, comprises primarily family members such as the Scheels and select senior employee-managers who have risen through the ranks, ensuring alignment with the company's values. This composition supports a governance framework that promotes decentralized decision-making, granting store-level managers substantial autonomy in daily operations and local adaptations to maintain the brand's experiential retail model.^[5]^[22] Succession planning at Scheels is intrinsically linked to its ESOP structure, which incentivizes internal development and ownership among associates to guarantee leadership continuity without reliance on external or public shareholders. This approach, evident in promotions like Hanson's from frontline roles to CEO, fosters long-term stability by cultivating a deep bench of experienced talent committed to the employee-owned ethos.^[1]^[17]

Business Operations

Store Design and Customer Experience

Scheels stores are renowned for their expansive layouts, often ranging from 200,000 to 330,000 square feet, transforming them into destination retail experiences that blend shopping with entertainment elements to encourage prolonged customer engagement.^[23]^[24] This scale allows for multi-level designs that incorporate immersive attractions, setting Scheels apart from conventional sporting goods retailers by prioritizing a holistic, adventure-like atmosphere, while features may vary by location.^[25] A hallmark of Scheels' design is the inclusion of iconic features that enhance the customer experience, such as Ferris wheels—often around 65 feet tall in several locations—present in most stores since their introduction in the mid-2000s. The first Ferris wheel debuted in the 2004 Omaha, Nebraska store, marking a shift toward experiential retail, and has since become a central attraction offering panoramic views of the store interior for a nominal fee.^[26]^[1] Complementing this are large saltwater aquariums, often 16,000 gallons in capacity and housing hundreds of fish, which serve as captivating entryway displays in numerous stores.^[27]^[28] Additionally, sports simulators, particularly for golf, provide interactive demonstration areas where customers can test equipment in simulated environments, further integrating play into the shopping process.^[29] The interior layout emphasizes themed departments organized around specific sporting and outdoor pursuits, creating a sense of exploration within the vast space. Wildlife displays, featuring taxidermy mounts arranged on artificial mountains visible from multiple vantage points, add a natural, immersive backdrop that evokes outdoor adventures.^[30]^[31] Starting in the 2010s, Scheels incorporated dedicated family-friendly zones, such as candy shops and play areas, to broaden appeal and accommodate all ages during visits.^[1] These elements culminate in a store environment designed for leisure and discovery, with merchandise seamlessly woven into the thematic flow. The 2015 Overland Park, Kansas store, spanning 220,000 square feet, exemplifies this approach and serves as a benchmark for subsequent locations with its integration of a Ferris wheel, aquarium, wildlife mountain, and multi-level retail zones.^[32]^[33] This design philosophy continues to define Scheels' customer experience, fostering loyalty through memorable, entertainment-driven visits.^[25]

Product Offerings and Services

Scheels offers a diverse range of merchandise centered on sporting goods, apparel, and footwear tailored to outdoor and athletic pursuits. The inventory encompasses categories such as hunting gear, fishing equipment, golf accessories, fitness tools, and casual sportswear, enabling customers to equip themselves for activities including trail running, water sports, and team athletics.^[34] Each store typically stocks over two million active stock-keeping units (SKUs), providing an extensive selection that caters to both novice and expert enthusiasts.^[35] The retailer emphasizes partnerships with prominent brands to ensure high-quality offerings, including Nike for athletic apparel and footwear, Under Armour for performance wear, and The North Face for outdoor jackets and gear.^[36] In addition to these collaborations, Scheels maintains private label products, complementing the broader brand assortment.^[37] Customer services at Scheels enhance the shopping experience through specialized support and maintenance options. Custom fittings, particularly for golf clubs, are available at select locations, where experts use launch monitors and fitting systems to optimize equipment for individual swings, often with a nominal fee refunded upon purchase.^[38] Repair services include bike tune-ups and accessory installations, racquet restringing for tennis and squash, ski and snowboard tuning with binding adjustments, and reel spooling in fishing departments, all performed by trained technicians to extend gear longevity.^[39] Scheels integrates e-commerce capabilities that began with limited online sales in 2006, evolving into a full platform by the 2010s to support seamless ordering. Customers can purchase items online for in-store pickup, with most orders ready within one hour and held for up to 10 days, allowing hybrid shopping that aligns digital convenience with physical store access without competing against brick-and-mortar sales.^[1]^[40]

Brands and Subsidiaries

Scheels Outfitters

Scheels Outfitters is Scheels' premium in-house brand dedicated to high-end outdoor gear, primarily catering to enthusiasts of hunting, fishing, and shooting sports.^[41] The brand's product range encompasses specialized items such as fishing rods and reels, tackle boxes, fly assortments, hunting apparel including jackets, bibs, pants, and cold-weather accessories, as well as archery equipment and protective cases like molded ice cases for gear transport.^[42]^[43] These offerings emphasize durable, performance-driven materials designed for rugged field use, ensuring reliability and functionality for serious outdoor pursuits. Products from Scheels Outfitters are available exclusively through Scheels' physical stores in dedicated hunting, fishing, and shooting sections, as well as via the company's online platform, allowing customers nationwide access to the full inventory.^[41] In-store experiences include consultations with Scheels experts who provide personalized advice on gear selection, and many locations feature demo areas for testing items like archery equipment or fishing rods to enhance customer confidence in purchases.^[44] Scheels Outfitters differentiates itself through its focus on quality and exclusivity as an employee-designed line, with merchandise crafted in collaboration with field experts to meet specific outdoor demands.^[45] The brand integrates seamlessly into Scheels' broader sporting goods offerings, providing specialized options for premium outdoor activities.^[34]

Other Private Labels

Scheels has developed several in-house brands focused on casual apparel and accessories to complement its broader product range. One prominent example is Eden Ruth, an exclusive women's fashion line introduced in 2019, designed for the modern professional with items such as cardigans, blouses, t-shirts, and pants that blend comfort and style for office or everyday wear.^[46]^[47] These products emphasize versatile, machine-washable pieces suitable for transitional wardrobes, often featuring lightweight fabrics and classic fits to appeal to a wide audience of working women.^[48] In addition to structured lines like Eden Ruth, Scheels offers affordable branded items under the Scheels Exclusive umbrella, including logo merchandise such as t-shirts, hats, and seasonal accessories that bear the company's emblem for fan loyalty and casual use.^[49] These items, along with basic sporting gear like performance t-shirts and hoodies, are priced competitively to provide value without compromising quality, often utilizing performance fabrics for durability in everyday activities.^[50] Seasonal collections, such as limited-edition sweaters or holiday-themed apparel, further diversify this category, rotating to align with trends like fall layering or summer casuals.^[51] These private labels play a key role in fostering customer loyalty by offering exclusive, store-only designs that cannot be found elsewhere, combined with accessible pricing that makes high-quality basics attainable for budget-conscious shoppers.^[47] Unlike the premium outdoor alternatives in Scheels Outfitters, they prioritize everyday utility and broad appeal to encourage repeat visits and brand affinity.^[37] In the 2020s, Scheels expanded its private labels to include online exclusives, such as limited-edition collaborations like the Scheels Exclusive Stanley tumblers in unique colors and custom-engraved accessories available only through the e-commerce platform.^[52] This digital push has allowed for targeted seasonal drops and personalized merchandise, enhancing accessibility for customers beyond physical stores while maintaining the exclusivity that drives engagement.^[7]

Locations and Growth

Current Store Network

As of 2025, Scheels operates 34 stores across 16 U.S. states, primarily concentrated in the Midwest and Mountain West regions.^[3] The states include Arizona, Colorado, Idaho, Illinois, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, North Dakota, Oklahoma, South Dakota, Texas, Utah, and Wisconsin.^[3] This network reflects the company's strategic focus on mid-sized markets and suburban growth areas, with multiple locations in high-density states like Minnesota (six stores) and Iowa (four stores).^[5] The company's headquarters store is located in Fargo, North Dakota, serving as both a flagship retail outlet and the operational hub since the company's founding there in 1902.^[53] Among the network, the largest store is in The Colony, Texas, spanning 331,000 square feet and featuring over 85 specialty shops, a 16,000-gallon aquarium, and a 65-foot Ferris wheel.^[54] This location, which opened in 2020, holds the distinction of being the world's largest all-sports store.^[55] The newest addition is the Tulsa, Oklahoma, store, which opened on October 19, 2024, as the state's first Scheels and occupies space within the Woodland Hills Mall.^[56] Scheels stores vary in size and format to adapt to local demographics and site constraints, with typical footprints ranging from approximately 120,000 to over 300,000 square feet.^[57] Larger suburban formats, such as those in Johnstown, Colorado, or Sandy, Utah, emphasize expansive layouts with entertainment amenities like shooting galleries and golf simulators.^[58] In contrast, more compact urban or mall-integrated stores, like the one in Tulsa, prioritize accessibility and blend into existing retail environments while maintaining core features such as diverse sporting goods sections.^[59] This flexibility allows Scheels to tailor experiences to regional preferences, from outdoor-focused offerings in Mountain West locations to broader apparel selections in Midwestern urban-adjacent sites.^[60]

Expansion Plans and Developments

Scheels has announced plans to open a new store in Cedar Park, Texas, scheduled for fall 2026. The 240,000-square-foot facility, the company's second in Texas, will be located at 750 E. New Hope Drive in the CedarView development north of Austin, featuring a 16,000-gallon aquarium and a 65-foot Ferris wheel, while creating more than 500 jobs.^[24]^[61] In spring 2027, Scheels plans to open a store in Wauwatosa, Wisconsin, at Mayfair Mall. The over 210,000-square-foot location, the third in the state, will occupy the former Boston Store space following renovation and expansion, employing more than 500 associates and including signature attractions like a Ferris wheel.^[62] Scheels has announced plans to open its 37th store in Blaine, Minnesota, scheduled for spring 2028. The 250,000-square-foot facility will be situated near the National Sports Center in the 105th Avenue redevelopment district, anchoring a regional sports and entertainment hub while creating over 500 jobs, with the city providing an estimated $83 million in incentives for infrastructure improvements.^[5]^[63]^[64] Complementing this, the company plans its 38th location in Oklahoma City, Oklahoma, also targeting a spring 2028 opening. This over-300,000-square-foot store will anchor a new mixed-use development on the north side of the city, near Lake Hefner Parkway, with an investment exceeding $100 million and incentives up to $8 million from the city to support economic growth and generate approximately 500 jobs.^[65]^[66] Scheels pursues a selective expansion strategy, targeting high-growth markets that align with community needs and its employee-owned structure, which incorporates associate perspectives in strategic decisions to ensure long-term fit and sustainability.^[65] The 2024 opening of its Tulsa, Oklahoma, store—its 34th location and the state's first—has directly influenced this approach, demonstrating strong regional demand and informing criteria for subsequent sites like Oklahoma City by highlighting the value of integrated retail experiences in expanding markets.^[67]^[68]

References

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### Summary of Scheels' History
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Industry: Clothing, Shoes, Sports Equipment. Founded: 1902. Headquarters: Fargo, North Dakota. Country/Territory: United States. CEO: Matt Hanson.
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Scheels has a display filled with taxidermy mounts. Located on an artificial mountain, the display is visible from many parts of the store.
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### Summary of Scheels-Branded Clothing
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[64]
SCHEELS to Expand in Oklahoma: New OKC Store Opening Spring ...
Aug 12, 2025 · The 300,000+ square-foot store is planned for a new mixed-use development in North Oklahoma City. FARGO, N.D., Aug. 12, 2025 /PRNewswire ...Missing: size 200000
[65]
OKC Council approves Scheels incentive, retailer to open $100M store
Aug 12, 2025 · The 300,000-square-foot store will be built north of Kilpatrick Turnpike on the west side of State Highway 74. It is projected to draw 2.5 ...Missing: size 200000
[66]
SCHEELS eyes Oklahoma City expansion after Tulsa success
Aug 12, 2025 · The company now hopes to open a location in Oklahoma City, pending a vote by the Oklahoma City Council on Tuesday, Aug. 12. The store would be ...
[67]
Destination sporting goods store set to open amidst local competition
Oct 10, 2024 · The opening of sporting goods store Scheels at Woodland Hills Mall is nine days away. The Tulsa location is the third largest Scheels and the 34th location in ...