The Competition and Markets Authority is set to announce whether or not it will approve the Wiggle (Mapil Bidco ltd) purchase of Chain Reaction Cycles, with a ruling expected on June 30th.
The authority is currently looking into the landmark deal for the online cycle retail business, which includes the purchase of cycling distributors Hotlines Europe ltd and Decade Europe Ltd.
Those with a business interest in the merger have now been invited to comment by the CMA and have until May 18th to do so. The merging of the retail giants will, if approved, create a retailer with turnover in excess of £300 million.
Written representations on competition issues may be addressed
here.
Read the original announcement about the merger
here.
Original story from
cyclingindustry.news
Neither do I. LBS FTW!!
Fact is 98% of bike stores I've been too are shite and I wouldn't trust them to change a tyre. I'm a competent mechanic myself and can service my own suspension etc, bikes aren't hard to work on at all.
I've had brake pads fall out on my way home from my lbs, got my bike back in far worse condition than it went in after a service, had some young kid try to tell me a he'd set a brake up spongy and pulling to the bars because that how he liked it, not because it obviously needed bleeding. I've had a suspension fork come back and the last 2" didn't work any more; another guy wouldn't sell me tubeless sealant without trying to sell me stans rim tape, valves and new tyres despite me repeatedly telling him I was already running tubeless and just needed more sealant, he said the sealant would only work with stans tape and valves lol.... The list goes on.
I've only had 1 lbs I've trusted and that gave good service in 30 yrs and 3 different countries I've lived in, I've HAD to use CRC that whole time and they've been flawless!!!!
Lbs are dying because their prices for simple things are extortionate, they underpay their staff so only end up with teenager employees and they have no clue how to fix a bike or give good advice or customer service.
LBS in england are not a cause for concern because they make a fine living off what they have, and I am not part of that market, I dont think they really care either, and they certainly dont embrace MTB culture which is fine by me because they can do them and I'll do me.
Take a look and educate yourself - ride.io/news/the-history-of-chain-reaction-cycles
So no, CRC didnt go down to a marathon and hand out waters or whatever you would like them to do to earn your respect, they just organised an entire race series instead.
Its business, what do you want them to do, stay small so they can hang with your bros in NZ? CRC seem to still have plenty to do with the industry, they have shops in Ireland that deal with servicing etc, sponsor lots of riders and race series, sponsor trails in NI. - What more do you want?
Wiggle on the other hand, they seem to be a pure money maker from the start unless anybody has info to suggest otherwise.
Knock outfits like CRC all you want, they are here to stay, unlike the LBS if they dont adapt their business model to suit (Which some shops have done and they are doing really rather well....)
From my experience, whenever my bike needs repairs beyond the basics(usually suspension servIcing) there are a lot of local specialists who operate our of their home or small office, that don't need a storefront to offer excellent service. Additionally the work is usually excellent and prices very affordable.
Wiggle started from a local bike shop in Portsmouth, Butler's Cycles. Then they just got bigger, and bigger, and bigger!
Was a cool shop when I was growing up with all the Ringlè stuff in the glass cabinet and a full range of Marin hardtails. A world away from today
As for being able to complain to the store manager if you don't get great service when trying on the latest and greatest of everything at your LBS, and getting your brakes bled at midnight before a race:
1) "sorry, we don't have that helmet in stock, but we have this cheaper model at $30 more than you would pay for the top of the line at..."
2) "sure we can order the one you want, at full RRP, plus freight, you can pay us in full in advance. Did we mention it would take about two weeks."
3) [manager to mechanic] "I wonder if this customer has any idea that if he wasn't such a pain, you wouldn't spit in his brake fluid, and he wouldn't need to pay for a bleed before every race"
So let them merge if they jack the prices - more people will do their shopping with ze Germans.
Some things on bikediscount are WAY cheaper too.
@Dave5555: Good point it would bring it down to the level of worthlessness euro has been experiencing lately ha
When the market changes you must adapt or become extinct. Where I Live there is a mobile bike shop that shuttles around to all the events. That's innovation.
Here are your save a domestic job options. 1. Have your goods made in China and pay 30% markup via your LBS and save 5 jobs. 2. Have your goods made here, buy direct online and pay 30% more for fair wages and save 50 jobs.
TEMPLE
Don't feed me sob stories about the poor guys at the local bike shop, if they weren't such a rip off I would go there. Pretty sad when I can order a product from a foreign country, pay duties and taxes and still save a large sum of money.
If it meant the difference of a few dollars here and there I would just get it locally but it is more substantial than that.
Besides, local bike shops are still making profit overcharging the less mechanically inclined for services such as brake bleeds or even indexing their derailleurs for them.
Businesses are about competition and the best ones win. Chain reaction wasn't always a huge online retailer, they are just better than others and therefor have succeeded.
If you have enough money to throw it away overpaying for something when you can get it cheaper than by all means, enjoy that. I am not rich
The issue as I said is it is an entire monopoly. CRC can buy items from specialised (as an example) much cheaper than we can. Despite the fact we place orders with them every day, no local bike shop can ever hope to contend with wiggle and CRC partnership with a turnover of over 300 million a year, ordering in the hundreds of thousands from suppliers.
Also we are in fact cheaper than places such as evans and many online shops.