The rough world of the LBS

Discussion in 'Road Cycling' started by Robert Dole, Mar 8, 2004.

  1. Robert Dole

    Robert Dole Guest

    Two articles in the Chicago Tribune today about Schwinn's strategy and
    the difficult world of the LBS:

    Schwinn giving small dealers an uphill climb http://www.chicagotribune.com/business/chi-
    0403080214mar08,1,329664.story March 8, 2004 By Judith Crown
    / Special to the Tribune When Schwinn Bicycle started
    selling bikes to Wal-Mart, Target and other chain stores two
    years ago, Palatine dealer Mikes Bikes decided to stick with
    the historic brand. For this spring, however, the store
    hasn't ordered any Schwinns and now plans to...

    Self-service can be exercise in frustration http://www.chicagotribune.com/business/chi-
    0403080213mar08,1,7936440.story March 8, 2004 By Judith
    Crown / Special to the Tribune Independent dealers sell only
    20 percent of bikes, but earn 40 percent to 50 percent of
    the dollars spent. Does this mean it is better to buy at
    bike stores or the chains? For kids bikes, the chain store
    makes sense if you do not want to spend a lot and...

    The first article notes LBS shrinkage: "Industry consultant
    Jay Townley... said 375 independent bike shops closed last
    year, leaving 4,982. That is 20 percent below the 6,270
    shops that were operating in 2000, before the start of the
    latest economic downturn."

    There's also some interesting comments by local LBS owners
    who have adopted different strategies.

    The second article deals with a familiar comparison
    question: buy at a department store or an LBS?

    They are interesting articles. However, free Tribune
    registration is required. (note registration from other
    Tribune newspapers also works,
    e.g. if you are registered for the Orlando Sentinel)
     
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