View Full Version : Big box bike retail (Performance Bike) - are they hurtin' too?
54ny77
09-23-2013, 08:56 PM
Had an interesting "bike shop" (if you want to call it that) experience the other day--went into a local Performance Bike looking for a relatively mundane product (a stem). Last time I was in there, I can recall an aisle full of slatwall display fixtures holding dozens & dozens of 'em. I've been there a handful of times over the past several years or so, and they have always been chock full of stuff. I mean, a massive amount of stuff. Inventory costs must've been staggering.
No joke, now they had literally 1 of the particular brand I was looking for (Ritchey, and not in the right size, model or color), not in an aisle display but tucked inside a glass case that seemed to be cleared out. Dribs & drabs. And besides that, it was very slim pickins for other stuff overall (clothes, parts, etc.). Tons of crappy bikes though.
I've not been in another Performance Bike store for at least a decade, so I dunno what their other stores are like. Maybe they were starting the wind-down process for this particular store, or things are tuff in general, but it sure was weird seeing that vs. what I was used to. The counter help said they could order a stem for me, but it would take 7-14 days to get it. I jokingly (but politely) said I could do the same thing online, and have it shipped to my door vs. having to drive to the store to pick up. He didn't exactly disagree....
Which leads me to wonder, are companies like Performance hurtin' too, in addition to the small-midsize LBS?
MattTuck
09-23-2013, 09:06 PM
Another option is that they've just shed a lot of inventory because it is the end of the riding season. If I were running a seasonal business like that, I'd think managing your working capital (especially inventory) would be very important.
bcroslin
09-23-2013, 09:08 PM
Performance has opened 2 or 3 new stores here in FL and are apparently opening more throughout the SE. My guess they're doing just fine.
Dustin
09-23-2013, 09:45 PM
Here in SoCal, I've been consistently underwhelmed with what they have in stock. If you want a tube or a chain, they probably have you covered. Otherwise, pickings are slim.
54ny77
09-23-2013, 10:34 PM
that's where i'm at (so cal). the location is really bad (it's laguna hills store), am actually surprised it's still in biz since that shopping center is pretty much dead.
Here in SoCal, I've been consistently underwhelmed with what they have in stock. If you want a tube or a chain, they probably have you covered. Otherwise, pickings are slim.
tiretrax
09-23-2013, 10:41 PM
I bet that store closes soon. They've realigned their stores in the Dallas area. When one was slated for closure, it was starved for inventory until the move was announced, and then, it got nothing.
I was in the new location not too long ago to pick up some consumables. The manager was giving me a hard sell on some gear I just picked up to look at. I think everyone is hurting, except Wall Street, corporate lawyers, real estate folks, and doctors (and super high end retail serving them).
Elefantino
09-23-2013, 10:46 PM
We're doing fine, thanks! :banana:
oldpotatoe
09-24-2013, 07:36 AM
Had an interesting "bike shop" (if you want to call it that) experience the other day--went into a local Performance Bike looking for a relatively mundane product (a stem). Last time I was in there, I can recall an aisle full of slatwall display fixtures holding dozens & dozens of 'em. I've been there a handful of times over the past several years or so, and they have always been chock full of stuff. I mean, a massive amount of stuff. Inventory costs must've been staggering.
No joke, now they had literally 1 of the particular brand I was looking for (Ritchey, and not in the right size, model or color), not in an aisle display but tucked inside a glass case that seemed to be cleared out. Dribs & drabs. And besides that, it was very slim pickins for other stuff overall (clothes, parts, etc.). Tons of crappy bikes though.
I've not been in another Performance Bike store for at least a decade, so I dunno what their other stores are like. Maybe they were starting the wind-down process for this particular store, or things are tuff in general, but it sure was weird seeing that vs. what I was used to. The counter help said they could order a stem for me, but it would take 7-14 days to get it. I jokingly (but politely) said I could do the same thing online, and have it shipped to my door vs. having to drive to the store to pick up. He didn't exactly disagree....
Which leads me to wonder, are companies like Performance hurtin' too, in addition to the small-midsize LBS?
Depends on the location of any bike shop I suspect. Some are doing fine and some aren't. Our season here has been 'interesting', snow in March and April, now the floods has essentially closed most places people ride..both MTB and road..so the season is kinda ending early...
BUT in spite of this, we have nearly doubled out Moots sales, from our previous yearly high and our service $, wheel builds, etc, have never been better. BUT some 'local' bike shops, that rely on throwing bikes out the front door, are saddled with HUGE 2013 bicycle inventories...and it's time for them to receive 2014 stuff, don't envy them.
One other, local 'mid-sized'(not sure what that is) bike shop, University, is doing just fine...
lookout2015
09-24-2013, 07:43 AM
Here in SoCal, I've been consistently underwhelmed with what they have in stock. If you want a tube or a chain, they probably have you covered. Otherwise, pickings are slim.
It's the same here in Georgia. I sometimes run into a couple of them around Atlanta when passing through, but I generally find even standard biking supplies like tubes in my sizes (just various widths of 700c -- nothing exotic) are in stock at REI than at Performance Bike
rePhil
09-24-2013, 08:11 AM
Have you been to the one in Tampa? I'll be on an airport run next week and was wondering if it is worth a visit.
Performance has opened 2 or 3 new stores here in FL and are apparently opening more throughout the SE. My guess they're doing just fine.
bargainguy
09-24-2013, 08:28 AM
I was once a Team Performance member, meaning you pay an upfront fee (something like $25/yr.) to get 10% back of your purchases toward future purchases.
But I stopped doing that when after paying my fee one year and deciding not to renew the next, found a $25 charge on my credit card bill at re-signing time. Found out the company had an auto-renew clause that you had to opt out of by contacting them, otherwise they'd charge you the fee forever. I have no use for retailers that try to get an extra buck by the old "negative response" ploy.
bloody sunday
09-24-2013, 09:28 AM
Sure they sell some low end and budget stuff. But I personally love performance. They have sales all the time and with their 100% nqa returns policy! they can't be beat as far a s b&m's go. I've gone in many times and have been given 10% off just because. Love it. And will continue to go there for things like tires, tubes, air carts and electronic bits. Got a smokin deal on a Garmin 200 recently.
54ny77
09-24-2013, 09:35 AM
I went in for a stem and a couple of things like long valve tubes. Literally, nada in stock. Maybe they are closing down the place. If so it's too bad, because knock the platform as one might, there are people who work there (one older guy was very nice & helpful, albeit not too product knowledgeable) and that means it's probably a dozen or so jobs that might get lost.
Sure they sell some low end and budget stuff. But I personally love performance. They have sales all the time and with their 100% nqa returns policy! they can't be beat as far a s b&m's go. I've gone in many times and have been given 10% off just because. Love it. And will continue to go there for things like tires, tubes, air carts and electronic bits. Got a smokin deal on a Garmin 200 recently.
I bet that store closes soon. They've realigned their stores in the Dallas area. When one was slated for closure, it was starved for inventory until the move was announced, and then, it got nothing.
I was in the new location not too long ago to pick up some consumables. The manager was giving me a hard sell on some gear I just picked up to look at. I think everyone is hurting, except Wall Street, corporate lawyers, real estate folks, and doctors (and super high end retail serving them).
Do we always have to blame the lawyers?
bloody sunday
09-24-2013, 10:00 AM
I went in for a stem and a couple of things like long valve tubes. Literally, nada in stock. Maybe they are closing down the place. If so it's too bad, because knock the platform as one might, there are people who work there (one older guy was very nice & helpful, albeit not too product knowledgeable) and that means it's probably a dozen or so jobs that might get lost.
The store in Berkeley moved, and before they moved, the same thing happened - very little inventory. I think it's indicative of either the store moving or closing.
54ny77
09-24-2013, 10:03 AM
Just the lawyers who drafted risk factors in CDO squared pro supps. ;)
They forgot to add: "You will lose 100% of your investment sooner than you might think."
;)
Do we always have to blame the lawyers?
sales guy
09-24-2013, 10:06 AM
We had two here in northeast Ohio and one closed at the five year point(end of the lease time). The other is hanging on by a thread. It's most club riders and older people going in for a deal. The shops in the areas of the two here, they felt the hit on sales initially. For the first year or two. But after that, the shops have recovered and performance has dropped off. I think the reason for our area is they tuck them very close to multiple existing shops. And with our season of riding, the winters are very harsh, no one rides really. And they had poor mechanical service. All those combined hurt them here I believe.
They are down to 4 stores total in Ohio. At one point they had 12. So that should show that the seasons, rider finickiness, location and poor service leads to a shops closure. Remember, they are all about numbers. You don't hit them and you're gone. Whether you are the manager or the store entirely. The one closest to me went thru 5 managers in 5 years!
Just the lawyers who drafted risk factors in CDO squared pro supps. ;)
They forgot to add: "You will lose 100% of your investment sooner than you might think."
;)
I am certain they included the risk of losing 100% of your investment, but you are probably right on the timing aspect!
54ny77
09-24-2013, 10:16 AM
[edit, woops....wrong thread....]
pakora
09-24-2013, 12:08 PM
The Philly store is new (-ish, anyway) and that's typical of the store in general. I've bought Ultegra bbs for the same price as DA because DA wasn't in stock, gotten the one and only GXP bb from an opened box, not found common brake pads, and so on. I only go there when I'm stuck with something and there's inclement weather because it's very close to me (no car) but I even gave up doing that.
I figured it was part of their model - get cheap bikes and a few midrange accessories/consumables/clothes out the door, and have a smattering of everything else - but I've never been to any other of their stores.
VA-Scooter
09-24-2013, 12:27 PM
Kind of the "J C Whitney" of the bicycle industry.
jmpsmash
09-24-2013, 12:33 PM
For the brands that Performance sells, I can imagine they attract the more casual cyclist who's complete budget are in the <$1000 range. those consumers are not the most mechanical savvy and unless they sell components at huge discount they will hardly see any business in that front. i can imagine their component business stronger online.
The ones here in N Cal are similar, very little components and what they have are all in glass cases. they do seem to have better stock on accessories.
Liharvy
09-24-2013, 02:47 PM
Was in the Oceanside California store last spring and it was relatively bare.
They had everything you needed but often times no choice for brand or model.
Moved away from there in 2007 and remember they had things I could only dream of purchasing.
Maybe they health of the store or a SoCal predilection for smaller boutique stores like Nytro, etc...
The one in Santa Monica and another in Pasadena seem to be doing okay. The Santa Monica store was even hiring.
Gummee
09-24-2013, 10:14 PM
For the brands that Performance sells, I can imagine they attract the more casual cyclist who's complete budget are in the <$1000 range. those consumers are not the most mechanical savvy and unless they sell components at huge discount they will hardly see any business in that front. i can imagine their component business stronger online.This. I work for a local PBS, running the shop. While I don't get 'lawn furniture' grade bikes to work on nearly as much as I did in the last LBS I ran, we get a few. What I DO get are first-time cyclists and/or beginner cyclists looking to upgrade from their [insert brand here] and see the Fujis, GTs, and Diamondbacks in the middle of the range as that upgrade. We sell more than a few mid-range bikes. Higher end stuff? Not so much. That's pretty much all 'red phone only' stuff.
Speaking of the red phone... More than likely, the higher end stuff you're looking for is online. They don't send much of it to the stores. It just doesn't sell.
M
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