Patchelicious Posted April 13, 2016 Posted April 13, 2016 Prices will go up and no more asking for goods to be on sale. I guess that says goodbye to online shopping.. and especially the fire sales and one day sales that CWC have here on the hub Usually when a company aquires another it is not to change the business being acquired, but to incorporate the things that work at that business and gain access to their demographic and business models.... I doubt that they will take the aspects of what made CWC great and throw that away without proper consideration. Else it would probably just be cheaper to build a CL Megastore across the road. Remember, buying businesses is expensive, as you are paying someone for their percieved future earnings. You will also find that CWjr and Snr would be tied in for a few years.
raptor-22 Posted April 13, 2016 Posted April 13, 2016 There is a fundamental problem somewhere when a bike shop needs to resort to grey imports.In this case Im pretty sure its a combination of prices and stock holding at the local agents. Shimano is a difficult one because they have different pricing models for wholesale and online sales etc. cutting out the middle man is a fundamental problem?
Pure Savage Posted April 13, 2016 Posted April 13, 2016 They would probably purchase CWC for the online portal side. I think it will just be a logo change if that, hopefully they can afford to get Ray Cox some team mates at the Cape Town races
JDipstiek Posted April 13, 2016 Author Posted April 13, 2016 I guess that says goodbye to online shopping.. and especially the fire sales and one day sales that CWC have here on the hub I Doubt it It might work the other way around
Cyklon Posted April 13, 2016 Posted April 13, 2016 Different cultures, I like the smaller guy setups. CWC, Linden, Mikes etc. Hope its not so
shaper Posted April 13, 2016 Posted April 13, 2016 Usually when a company aquires another it is not to change the business being acquired, but to incorporate the things that work at that business and gain access to their demographic and business models.... I doubt that they will take the aspects of what made CWC great and throw that away without proper consideration. Else it would probably just be cheaper to build a CL Megastore across the road. Remember, buying businesses is expensive, as you are paying someone for their percieved future earnings. You will also find that CWjr and Snr would be tied in for a few years.If I remember correctly CL opened a mega store just around the the corner from CWC in Greenpoint, it failed and closed?. Businesses also buy businesses just to take out the competition. The holding company of CL and the Proshop, Morecorp have been active on the hub, but have never done a fire sale and only do their tried and tested sales the current one being Mad March which has just finished... not a real success or craze and done often when people do not need stuff. Morecorp also sold a majority stake to Old Mutual Private Equity in December 2015. Old mutual do not seem the type that will keep a model, but rather through mergers and acquisitions remove the competition. I guess we will wait and see if first there is a truth in the rumour and then how the business plan for CL and CWC will play out.
Suidwes Boytjie Posted April 13, 2016 Posted April 13, 2016 I believe that CWC is on a much more personal level with its costumers regarding sale and such... If there is any truth in this (and i hope not) i believe that that personal customer care will be gone. It would be quite interesting to hear from the CWC team themselves... so we will wait until then to see... Until then, how about a lekker sale Oom Chris?
Guest notmyname Posted April 13, 2016 Posted April 13, 2016 That sucks. The only time I've been in CWC I was minding my own business eye naaiing the bikes on offer. Lone behold Mr CW came and offered me a coffee just for being there. CL won't even let you test ride a bike.
Christian van Zyl Posted April 13, 2016 Posted April 13, 2016 cutting out the middle man is a fundamental problem?Only when the problems end up on the distributor's desks. Been in distribution for years... Everyone loves a good grey deal until it must be supported.
Skubarra Posted April 13, 2016 Posted April 13, 2016 Morecorp also sold a majority stake to Old Mutual Private Equity in December 2015. Old mutual do not seem the type that will keep a model, but rather through mergers and acquisitions remove the competition. Some wise-ass told me 2 weeks ago that Old Mutual is buying CWC - I laughed at him because why would an insurer buy a bike shop... After your post I'm not laughing anymore
PhilipV Posted April 13, 2016 Posted April 13, 2016 Hmmm, nothing like a little rumour to spark interest in 2 businesses. there is mos no such thing as bad publicity.If it is true, I hope CW Snr organises himself a lekker retirement upgrade out of it. He has worked hard for it over the years.
Paul Ruinaard Posted April 13, 2016 Posted April 13, 2016 Hmm, for all their bad press and so called issues CL have, they seem to stay in business and be growing at a speed. I was in there the other day and the sheer variety of what they have on the shelves is huge. It's better than some major stores i have been to in the USA. Sure its not niche but its pretty damn impressive..... I have always been treated well by them. Strategically it would seem like a great idea to pair the two up and leverage the synergies - it would certainly take out a lot of competition... BTW - become a Momentum member and then get club membership at CL you will be shopping at 18 to 25% off their shelf prices. Small trick i learned that is making a huge difference to how much i am paying....
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