USA's largest retail cycle chain closes after bancruptcy

[Plentipotential]

That's why they are not going to exist much longer!

 

I think their problems are as a direct result of employing people who don't care, don't know how and are protected by unions. Much like a lot of retailers in South Africa these days. Now the chickens are coming home.

[DieselnDust]

I think their problems are as a direct result of employing people who don't care, don't know how and are protected by unions. Much like a lot of retailers in South Africa these days.

 

 

strangely customer service or lack thereof is rarely a direct cause. Edgars problems are the same as many other large retailers in that their debt value exceeds their asset value. If your creditors see you are unlikely to pay your bills they start calling in the cash.

Slow sales, that mostly happen on credit points to increasing cash flow problems that becomes harder and harder to cycle out of. Once you past the tipping point bankcrupcy is really dependant on the shareholders willingness to pump in more cash. when the market is over supplied that is never going to happen. then your debtors don't pay their bills on time either.....eish

 

the same is happening in the cycle trade. Too many brands distributors, retailers too little people to sell to. Its just not as far down into the cycle as some clothing retailers because its still  largely a cash industry. But already credit is available for bicycles, along with direct to consumer sales. It all points to declining profit and a shrinking market. lLarge inflexible businesses are going to be the first to fall           

[Spoke101]

I think their problems are as a direct result of employing people who don't care, don't know how and are protected by unions. Much like a lot of retailers in South Africa these days. Now the chickens are coming home.

 

This rings true for me. If the employees don't have an interest in what they selling/doing there is no will to progress.

When I used to work in my LBS one of the per-requisites was that you rode a bike and not like a few times a month. Most of us used to ride daily and be at the races on the weekend, even the mechanics all rode to work.

[Jase619]

Being a true-blue Giant product supporter, I popped into the Giant shop in the sea-side holiday town of Shelley Beach (Kzn), expecting to have a truly good 'fix'. Although the owner was friendly and helpful, the shop environment was clinical, with no special flavour, vibe or any atmosphere aimed at parting me from my money or getting me back again. If this is the required Giant image, then I cannot see the branded shops being a success.

 

I have to agree with this, I know the owner as well, but the store is emotionless and bland. He is a really nice guy as is his wife who also helps out there occasionally, but the store has no personality.

 

Goes the same for the Spez store in Bloemfontein, great owner and staff are super helpful. But no atmosphere or emotion. Surely when you are going to part with a few months salary for a Spez, they should at least take you to dinner(or a cup of coffee) before they bend you over. . . 

[BigDL]

Traditional retail is struggling globally. Online is putting pressure on bricks and mortar, regardless of whether it’s a mom and pop business or a major player. Lots of brands are trying to evolve to create an experience that brings you in store, with varying degrees of success.

 

Yes, we can pontificate about the experience provided by our local bike shop on this thread, and this is so important, but the reality is that every time we buy something online, because it is cheaper or for whatever reason, we are taking money away from local businesses. Yes, we may pay them to fit the part or set it up or something, but we still took some small amount of profit that could have made them more sustainable. I am not saying that this is wrong, just that it is the reality.

[DieselnDust]

Traditional retail is struggling globally. Online is putting pressure on bricks and mortar, regardless of whether it’s a mom and pop business or a major player. Lots of brands are trying to evolve to create an experience that brings you in store, with varying degrees of success.

 

Yes, we can pontificate about the experience provided by our local bike shop on this thread, and this is so important, but the reality is that every time we buy something online, because it is cheaper or for whatever reason, we are taking money away from local businesses. Yes, we may pay them to fit the part or set it up or something, but we still took some small amount of profit that could have made them more sustainable. I am not saying that this is wrong, just that it is the reality.

 

 

A very big BINGO!

[GrahamS2]

strangely customer service or lack thereof is rarely a direct cause. Edgars problems are the same as many other large retailers in that their debt value exceeds their asset value. If your creditors see you are unlikely to pay your bills they start calling in the cash.

Slow sales, that mostly happen on credit points to increasing cash flow problems that becomes harder and harder to cycle out of. Once you past the tipping point bankcrupcy is really dependant on the shareholders willingness to pump in more cash. when the market is over supplied that is never going to happen. then your debtors don't pay their bills on time either.....eish

 

the same is happening in the cycle trade. Too many brands distributors, retailers too little people to sell to. Its just not as far down into the cycle as some clothing retailers because its still  largely a cash industry. But already credit is available for bicycles, along with direct to consumer sales. It all points to declining profit and a shrinking market. lLarge inflexible businesses are going to be the first to fall           

That's pretty much it. Edcon's focus moved from selling clothing to giving loans and collecting debts. Turns out they weren't much good at the latter.

[Geronimo]

Being a true-blue Giant product supporter, I popped into the Giant shop in the sea-side holiday town of Shelley Beach (Kzn), expecting to have a truly good 'fix'. Although the owner was friendly and helpful, the shop environment was clinical, with no special flavour, vibe or any atmosphere aimed at parting me from my money or getting me back again. If this is the required Giant image, then I cannot see the branded shops being a success.

 

I live in that side of the woods and have only been in the store twice. Walk in walk out. Go a few km's down to Uvongo and pop in at Dura Cycles and experience the vibe 

[Stevief]

Bottom line is this world is becoming automated.  First the retailers are feeling the heat and next it will be those in repetitive jobs that can easy be replicated by AI or robots.  Like tellers, truck drivers, factory workers etc  Soon it will change to services that dont require much creativity like bookkeeping etc

 

World is moving fwd so fast these days most degrees that students are getting into debt to try and complete  are already redundant.  Times are interesting and frightening.

[Stretch]

Traditional retail is struggling globally. Online is putting pressure on bricks and mortar, regardless of whether it’s a mom and pop business or a major player. Lots of brands are trying to evolve to create an experience that brings you in store, with varying degrees of success.

 

Yes, we can pontificate about the experience provided by our local bike shop on this thread, and this is so important, but the reality is that every time we buy something online, because it is cheaper or for whatever reason, we are taking money away from local businesses. Yes, we may pay them to fit the part or set it up or something, but we still took some small amount of profit that could have made them more sustainable. I am not saying that this is wrong, just that it is the reality.

Agreed.. At the same time local retailers need to up their game. I looked around lovely to buy a simple Bluetooth adaptor for my car. The best I could find locally was one for €70. I bought something on Amazon for €21. And it's a a decent make not some Chinese knock off

[BigDL]

Bottom line is this world is becoming automated. First the retailers are feeling the heat and next it will be those in repetitive jobs that can easy be replicated by AI or robots. Like tellers, truck drivers, factory workers etc Soon it will change to services that dont require much creativity like bookkeeping etc

 

World is moving fwd so fast these days most degrees that students are getting into debt to try and complete are already redundant. Times are interesting and frightening.

Accountants, GP’s, Surgeons, nurses, builders, mechanics, drivers, cleaners, shop staff.......... very few roles that will be protected from AI. Look at the experiment by Babylon where there machines made accurate diagnoses based on symptoms shared by the patient at the the same percentage as human doctors. The key difference is that, in a global network of machine learning, every diagnosis in the world could theoretically be improved by the learning from one mistake made by one machine and corrected.

[Stretch]

Talking of AI...I watched a robot get a hole in one the other day

[DieselnDust]

Bottom line is this world is becoming automated.  First the retailers are feeling the heat and next it will be those in repetitive jobs that can easy be replicated by AI or robots.  Like tellers, truck drivers, factory workers etc  Soon it will change to services that dont require much creativity like bookkeeping etc

 

World is moving fwd so fast these days most degrees that students are getting into debt to try and complete  are already redundant.  Times are interesting and frightening.

 

 

yes automation is making transactions easier but it will take some time before it displaces a store front.

THe problem isn't technology usurping people. Its people not adapting to what other people want.

We don't buy cars online. Why? many of us still want to touch the leather, feel he seats, look at the boot space, here the sound of a door closing to a solid clunk rather than a tinny tink.

Cycling is no different. Some will buy online but they will first go to a store front to touch and feel the goods. We then head online to purchase.

So why do bicycle retailers have a instore webstore where people can conduct the transaction themselves? There's something satisfying about having a perceived control over the purchase and not feeling pressured or railroaded by a salesman looking over your shoulder.

These are human problems, not technological ones.

Store need to evolve as their customers evolve. Sadly most don't and they only know price competition.

The whole customer experience is what sets good shops apart from the bad ones. Technology is just one little slice of that pi.

 

you will not believe how many bike shop owners think that price is the only differentiator.

[DieselnDust]

Accountants, GP’s, Surgeons, nurses, builders, mechanics, drivers, cleaners, shop staff.......... very few roles that will be protected from AI. Look at the experiment by Babylon where there machines made accurate diagnoses based on symptoms shared by the patient at the the same percentage as human doctors. The key difference is that, in a global network of machine learning, every diagnosis in the world could theoretically be improved by the learning from one mistake made by one machine and corrected.

 

 

But people achieve the same end faster and more efficiently.

A machine cannot create. It can only learn empirically from other machines. Machines do not have eureka moments.

it i faster at running through sets of data and go/no-go checklists. It is faster at running routine calculation but it cannot postulate a theory from the data it processes

[Dirkitech]

strangely customer service or lack thereof is rarely a direct cause. Edgars problems are the same as many other large retailers in that their debt value exceeds their asset value. If your creditors see you are unlikely to pay your bills they start calling in the cash.

Slow sales, that mostly happen on credit points to increasing cash flow problems that becomes harder and harder to cycle out of. Once you past the tipping point bankcrupcy is really dependant on the shareholders willingness to pump in more cash. when the market is over supplied that is never going to happen. then your debtors don't pay their bills on time either.....eish

 

the same is happening in the cycle trade. Too many brands distributors, retailers too little people to sell to. Its just not as far down into the cycle as some clothing retailers because its still  largely a cash industry. But already credit is available for bicycles, along with direct to consumer sales. It all points to declining profit and a shrinking market. lLarge inflexible businesses are going to be the first to fall           

I don't know about this being factual? At the very least it disagrees with me. I base my shopping at a store entirely on 2 things - price and customer service/experience (which includes staff knowledge and attitudes and how streamline checking out is). Failing either, the shop doesn't receive my business again. Straight forward and simple.

[The Ouzo]

some very good points raised here about retail experience.

 

Fact of the matter is, even though people want to touch and feel, they will still then go and compare prices online and buy the cheapest.

Customer service and experience will make a difference and a lot of the times if the customer buys from a brick and mortar store they will buy from the one with the better service.

 

What retail stores now need to offer is a destination experience. Most of the times this will translate to a coffee shop or restaurant with the product sales being a sideline and not the sole reason why customers come there.

 

I liked the idea someone mentioned earlier of having an instore webstore. Let the customer touch and feel the product on display, then sit down with a cup of coffee and a laptop/tablet and order what they want from your webstore.