Gun Sales Hinge on Obama Re-Election

As Cabela's Inc. prepares the selection of guns it will sell for the holiday season and winter hunting, the outdoor-gear retailer has two plans: one if President Barack Obama is re-elected, and one if he isn't. The Sidney, Neb.-based retailer and other companies in the guns-and-ammo business say if Mr. Obama wins a second term they are preparing for a surge in sales—the same as they saw after he was elected in 2008—from buyers fearful the president would back policies to make buying a gun more difficult. If Republican challenger Mitt Romney wins, though, the chain plans to stock more items such as waterproof boots and camouflage hunting gear. Cabela's saw a 25% increase in new gun buyers right after the 2008 election, and continues to see strong sales, aided by an uptick in female and younger customers, according to Mr. Arterburn. Nearly 12 million background checks for gun sales took place in the U.S. this year through Aug. 31, up 56% from the same period in 2008, according to the Federal Bureau of Investigation. Customers must undergo background checks before buying firearms from federally licensed sellers. Collections of federal excise taxes on the sale of new firearms and ammunition, a proxy for gun sales, rose to $453 million in 2009, a 45% jump from the year before. That's a significant surge compared with the average 6% annual increase reported by the Treasury Department's Alcohol and Tobacco Tax and Trade Bureau from 1993 to 2008...more