Camping World Chairman and CEO Marcus Lemonis said Wednesday the dealership group has more inventory of one-model-year-removed RVs to start the year than it typically does. However, he said close work between Camping World and OEMs is helping sell through the company’s aged assets.
To start 2023, Lemonis said Camping World stores average about 185 RVs per location, as low as he could recall in the past five years, outside of December 2020.
However, the company typically starts a year with about 20% of RVs one year older than the latest model year. This year, however, Lemonis said the company has “a little bit more” of 2022 models “that we know we are going to have to work through.”
He said OEMs have worked to help dealers prepare for 2024 model year introductions. Lemonis said Camping World expects changeover to occur in mid-summer.
“I have heard some other suggestions that it could be a little earlier. That is not the case,” Lemonis said. “I can assure everyone that by the July, August timeframe, we will start to see the introduction of those model year 2024. It is always a gradual cycle by which those newer model years of 2024 will be introduced, which will afford us ample time in the selling season to sell through 2022 model year (RVs).”
Lemonis also answered a question about manufacturers’ 2024 pricing by discussing decontenting.
He said as manufacturers look to offset increased material supply costs, the company hoped OEMs would not simply decontent RVs to lower prices.
“We think that takes away some of the sizzle for the consumers,” he said.
However, because of Camping World’s expansive parts/accessories reach, including electronics, awnings, furniture and cabinets, the dealership was positioned to take advantage of aftermarket installations should they be required.
“We are encouraging the manufacturers to look for innovation,” Lemonis said.
The company is encouraging manufacturers to eliminate items that do not take value away from consumers, he said.
Lemonis said during his visit to Elkhart, Indiana, in the past week, he was pleased to drive through yards and not see thousands of RVs.
“I give the manufacturers, particularly Forest River and Winnebago, a lot of credit for working more closely with the dealers,” he said. “This is an everyday thing, and we have to stay disciplined to ensure that the orders that dealers like ourselves are placing and the units that RV manufacturers are making are closer together.”
Camping World has been cutting back on staff and investments since the fourth quarter. Lemonis said the company cut staffing by 1,000 employees in the fourth quarter. The dealership group has four stores under purchase agreements or letters of intent that are scheduled to close in the second quarter. Nine more locations have been built or will be finished soon.
However, openings are expected to be delayed.
“Unlike our historical process, we are waiting on opening those locations until we have more visibility on the trend lines and the current state, so as not to deploy capital or take on any new store opening expenses at this time,” Lemonis said. “We believe in the strength of our business and understand that the temporary softening of both new RV sales and margins demanded action.”
At the end of 2022, Camping World reported operating 197 stores and employing 12,942 full-time workers and 469 part-time/seasonal workers.
