Delaware Discount Store Pulls Shoppers from Nearby States with Tax-Free Shopping

Bargain hunters head to Gabe's in Bear, Delaware, attracted by super-low prices and no sales tax. This shopping destination buys closeouts and extra inventory, turning other retailers' overflow into customer savings.

What began as one store has exploded into a retail giant. Today, 130 stores spread across multiple states, with 8,000 employees keeping merchandise flowing from designer clothes to kitchen gear.

Two brothers, James and Arthur Gabriel, launched this retail success story in Morgantown, West Virginia in 1961. Their winning formula? Buy up clearance and overstock items other stores couldn't move.

The store pulls budget-conscious shoppers from neighboring states. People from Pennsylvania and Maryland drive over to find deals. New items arrive weekly, making each shopping trip feel like a discovery.

Major shifts happened in 2013 when investment firms took over. The name changed from Gabriel Brothers to just "Gabe's." First Alvarez & Marsal Capital jumped in, then Warburg Pincus took control in 2016.

The Bear store boosts the local economy. Beyond retail, it creates jobs and brings customers to nearby businesses, driving growth from both area residents and out-of-towners.

Strategic buying helps Gabe's keep prices way under normal retail. They grab overstock and clearance opportunities, letting shoppers get name brands without paying full price.