How has COVID-19 Impacted Bike Retail in North America and Beyond? - Part 2
We have received numerous emails and one press release after another over the last few months informing us of how COVID-19 has impacted the bike industry in various respects. Races have been canceled or postponed, trade shows have been postponed, canceled or conducted online, and the Olympics are now rescheduled for next year. Brands have laid off employees, instated new policies and programs to get products into the hands of consumers, and switched production to manufacture PPE for healthcare workers, to name a few. We've got a full timeline here and have been keeping track of the Good News from the Industry here.
Bike shops are, in many ways, the heart and soul of cycling. Many riders purchased their first bike from one, make friends there, go there for advice, meet up at them for group rides, and stop by just to talk about bikes or have a beer. A lot has changed recently, forcing retailers to quickly react and develop new strategies for doing business. We checked in with a mix of them and asked a few questions to see what they've done, how the pandemic has impacted their business and their thoughts about the future.
This is the second part of a two-part series. Since publishing part one, many places have gradually started to re-open, amid various government guidelines and in reaching out to the various shops, several things are very apparent. Many are seeing an unprecedented amount of business...to the point we can't even contact them. We've heard of month-long turnarounds for repairs and backorders of bikes in the thousands. Suppliers are seeing all-time high sell rates for many products and bikes are becoming a commodity in many places. While it seems that many shops are doing well, others - especially in places dependent on tourism or facing restrictions on operations, have taken large losses.
You can check out the first part here.
Full Circle Cycle - Orlando, Florida
Full Circle Cycle has been doing business in the Orlando, Florida area since the '90's and has been consistently recognized by the NBDA as one of "America's Best Bike Shops". While many people think of Disney and Daytona Beach when Florida is mentioned, the state also serves up a good deal of mountain biking with the Alafia and Santos trails being just a short drive from Orlando in the center of the state. Florida also provides a refuge for riders in the cold winter months with temperatures being much more temperate than further north. fullcirclecycleorlando.com
Have you laid off staff?
Fred Hewitt, Owner: No, had one part-time employee leave on their own. We have been slowly bringing staff back into the shop itself now that we are working from the shop more.
Are you selling more, less, or the same?
FH: For April, we were up 40% in sales dollars over Apr 2019 (last year was very low though). We are on par with our 5-year average. We are doing 8% less item volume overall as we are selling lots of bikes. Service is up 33% with 13% increase in the volume of repairs.
Are you doing online orders, curbside pick-up, or in-store?
FH: Thankfully, we already had a robust e-commerce platform, so that has helped generate bike and equipment sales. We're doing curbside pick up for online orders and repair dropoff and no instore business at the moment. We closed our doors to the public on March 18th and we have been operating out of tents set up in our back parking lot.
What is your safety protocol? How has that changed?
FH: No one but employees allowed are in the physical store. Masks and gloves are required for staff. We are doing outdoor transactions only with contactless payments and no test rides. We also have fewer hours open to relieve employees and stagger schedules and are doing appointments for service. We spray all incoming service bikes with disinfectant, wash them with soapy water, let them sit in our Florida sun, and then bring them into the shop. Contact points (grips, seat, etc) on new and repair bikes are sprayed with alcohol prior to the customer receiving them.
How have the customers changed? Are you noticing more core cyclists or new riders?
FH: Definitely lots of new riders or people who rode at one time but then put their bike away. It seems as if now they're pulling them out of the garages and we're getting them riding again.
What is your prediction of long-term outcomes? How do you believe this will impact you over the next year?
FH: There's a range of possibilities. In the last eight weeks or so, we've had to pivot our business model several times. Two months ago, most in the bike industry didn't anticipate the overwhelming demand for cycling that was to come. We knew that we were going to be short on bikes come July, but no one planned on that point being moved up to the first of May. That effectively makes us a service only business at this time. It's my hope that this mini-boom in cycling turns into a longer-term trend as people are discovering the benefits of riding a bike.
Eddy's Bike Shop - Stow, Ohio
Eddy's Bike Shop is actually four shops in the Cleveland, Ohio area. Those four shops are some of the biggest and highest volume bicycle retailers in the country and they carry both Specialized and Trek, among other brands. The COVID-19 pandemic has caused a lot of change for their business in how they operate and who they are selling the most bikes to. In their 80th year of business, owner Jimmy Ruggles Jr. says that he's never seen anything like it with customers driving from hours away just to buy an entry-level mountain bike. eddys.com
Have you laid off staff?
Jimmy Ruggles Jr, Owner: We didn’t lay off anyone but it’s been interesting. While we maintained most of our guys, we had a few jump-off when they could collect unemployment but we kept our core staff. I matched the remaining staffs' base salary with what the government was able to give so those guys were getting their base salary with a $600/week bonus that I gave them - kind of like hazard pay.
Are you selling more, less, or the same?
JR: We are selling bikes and parts now like we would be in July typically. Fortunately, we had the inventory to handle it and that's what has kept us afloat. Normally our warehouse has 4,000 bikes in it this time of year but now we don't even turn the lights on in it because it's empty. Our service guys are extremely busy now. At the height of things, we were pulling in 60+ repairs a day. Everyone was working overtime. We have to push to stay within a one-week turnaround. It’s currently between 7-10 days. Under normal conditions, it’s a 24-hour turnaround. Our guys are coming in at 6 in the morning and working until 10 at night to get repairs done.
Are you doing online orders, curbside pick-up, or in-store?
JR: We are doing curbside pick-up and online orders. Our showroom at two stores closed for some time but at two others we were only able to do curbside pick up. The number of web orders we did in a month was more than the entire last year combined.
What is your safety protocol? How has that changed?
JR: Employees have to wear masks and gloves, per the state of Ohio regulations. We wipe down every test ride along with every new bike. Around the store, we have ample amounts of hand sanitizer and we offer customers gloves. People test riding a bike are required to bring their own helmets in or buy one - we're not allowing them to use our test helmets now.
How have the customers changed? Are you noticing more core cyclists or new riders?
JR: It’s a lot of new customers, 90% new volume for us. The way it sits now, we have over 3,000 bikes on backorder between Trek and Specialized. The business has been a good mix between entry-level bikes and higher-end. I think the bulk of it is people coming in wanting to spend $500-600 USD on a new bike but those are sold out so they’re spending $800-1200. When neighboring states were shut down, we had people driving from over four hours away just to buy an entry-level bike.
What is your prediction of long-term outcomes? How do you believe this will impact you over the next year?
JR: I think that going in the short term, hopefully, our regular mid-summer traffic still comes in and it's more than just this wave. Long term, I think next year, service departments, in general, are going to be overwhelmed with new bikes that have been sold plus the normal workload that they get. On the retail end, it’ll come down to product availability. If there’s no product that’s available to sell that’s reasonably priced it’ll push people into other outlets for recreation, whether it’s motorsports or other forms of recreation.
River City Bicycles - Portland, Oregon
River City Bicycles has been a mainstay in the Portland, Oregon bike community for 25 years. With two locations as well as an online store, the business has situated itself as one of the premier shops for everything from mountain bikes, to road bikes, and eBikes. River City employs a large staff and has been adapting during COVID-19 to continue serving its customers. rivercitybicycles.com
Have you laid off staff?
We have maintained our staffing levels and have added several employees since the pandemic began.
Are you selling more, less, or the same?
For a number of factors, we have seen an increase. Portland Spring has been beautiful, gyms are closed, kids are out of school, less traffic on roads—and let's not forget that BIKES ARE AWESOME, so naturally folks are reaching for them for fun and fitness.
Are you doing online orders, curbside pick-up, or in-store?
Online orders and curbside pick-up is how we have been operating. Our showrooms have been closed to customers since the distancing orders began.
What is your safety protocol? How has that changed?
The changes we have made like closing the showroom, washing/disinfecting bikes before service intake, masks, alcohol, and hand sanitizers have all been implemented to try to keep staff and customers safe. Those extra layers have been a big thing for both staff and customers to adapt to. Thankfully everyone is doing what they can to help and have been rolling with it.
How have the customers changed? Are you noticing more core cyclists or new riders?
It has been an increase in both. We've had the pleasure of serving riders in Portland for 25 years, and we are very excited to be helping the new mask-covered faces we are seeing, as well as online sales.
What is your prediction of long-term outcomes? How do you believe this will impact you over the next year?
First of all, I would be remiss if I did not call out and thank the hard work and extra efforts our entire staff has been putting in to keep our customers and community rolling. As far as future impact, we hope the folks reaching for handlebars right now are reminded how great life on a bike can be. When people experience how fun, healthy, and mind-clearing going for a ride is, it's a win for us all.
Meseroll - New York City, New York
Meseroll is a shop located in the East Williamsburg neighborhood of Brooklyn, in New York City - in the midst of one of the highest concentrations COVID-19 outbreak in the world. In business for four years now, the shop mainly focuses on BMX bikes although they see a share of other business come through as well. (The shop still carries Brooklyn Machine Works bikes...if you're looking for one.) Although the news media has portrayed NYC as an apocalyptic nightmare, according to owner Andrew York, it's definitely very strange but slightly less crazy (overall) on the ground than people elsewhere may believe, at least from what he's seen. He says that for the first few weeks of the outbreak, everyone was really scared and he's never seen the city so quiet with far fewer people out and about. It was unclear whether bike shops were considered an essential business at first but in that period, things were dead. In a city of 8 million people, it's impossible to distance yourself, even with the most caution, and people are hoping to get back to normal life sooner than later. meserollshop.com
Have you laid off staff?
Andrew York, Owner: No, it’s just me and one other guy. I get a lot of support from team guys and one other guy. I have him helping me from home. We’ve been optimizing our website and getting things dialed in.
Are you selling more, less, or the same?
AY: For the first two weeks, it was really dead. Since then, it’s been pretty busy. It seems like some of the other shops are also super busy. With us just doing BMX, it is a little limiting but we’re still really busy. I don’t think we’re that far ahead of where we normally would be but we’re definitely busy and people want to ride bikes. All of the suppliers are running out of bikes, parts, etc. I’m hoping the best is yet to come but it’s as much as I can handle being one person.
Are you doing online orders, curbside pick-up, or in-store?
AY: We are doing online orders with curbside pick up.
What is your safety protocol? How has that changed?
AY: I’m wearing a mask and anyone who comes into the store has to wear a mask as well.
How have the customers changed? Are you noticing more core cyclists or new riders?
AY: I think it’s pretty standard for us. We’re getting a lot of questions and people calling/showing up looking for different bikes that we don’t carry. For our customers (BMX), it’s the same. I do see the handful of guys fixing things up to get bikes riding nice as they have more time on their hands.
What is your prediction of long-term outcomes? How do you believe this will impact you over the next year?
AY: First, I”m hoping that it gets even busier once people go back to work and re-think how to get there. It’s easy to ride anywhere here and most people could ride to work very easily. I’m wary about what’s going to happen down the road and how it’s going to impact supply. How there may be more competition with shops if bikes are popular. Used bikes and used bike sales could be a variable - How is people buying new bikes now going to impact used bikes next year? I’m going to be exploring ways to re-use and refurbish parts however it’s tough in NY though because you have to have a pawnbrokers’ license to re-sell used parts, even at a bike shop.
The Factory Bike Shop - Fribourg, Switzerland
The Factory Bike Shop is an Enduro/DH shop that was started in 2016 by Bastien Ranger, an avid mountain biker. Beginning as an online store, it quickly grew to establish a storefront the next year. Like the rest of the world, Switzerland has gone through a great deal of quarantining and social distancing in an effort to slow the spread of the virus. Now, in their second phase of re-opening, the restrictions are easing but teleworking and social distancing is still encouraged and there is a long ways to go before things get back to normal. thefactorybikeshop.com
Have you laid off staff?
Thibaut Ranger: No, we have not had the need to lay off any staff, in fact we are currently hiring four people for our new shop.
Are you selling more, less, or the same?
TR: We have seen an increase in bike sales and have been selling more bikes.
Are you doing online orders, curbside pick-up, or in-store?
TR: We have been doing online / phone orders, with free at-home delivery for the customer. For new bikes, we were preparing them in the workshop and also sending them out for free.
What is your safety protocol? How has that changed?
TR: For repairs and services, we designated an area at the entrance for pick up and drop off. No contact, payment by card on the phone, and disinfection of the grips.
How have the customers changed? Are you noticing more core cyclists or new riders?
TR: Our customers haven’t really changed. However, I think that there’s a lot of people that got bored and wanted to get on a bike, so maybe an increased of customers overall on the market.
What is your prediction of long-term outcomes? How do you believe this will impact you over the next year?
TR: I think This virus will have no negative impact and that we will continue to grow as planned, prior to the virus.
Biker Store - Cali, Colombia
Colombia is an incredible place to ride a bike. Huge mountains and a strong riding scene have made the South American country's riding opportunities multiply in recent years. As many countries in the world are Colombia has been facing the Covid-19 situation with mandatory confinement imposed by the government. After a six week quarantine, some economic sectors have been allowed to reopen their doors to customers following very strict safety protocols. One of those businesses is bicycle shops since public transportation can increase the risk of contagion, bicycles are one of the best and safest ways to get around. Biker Store is located in Cali Colombia and has been making the best of the situation. Many thanks to our friend Felipe Martinez for helping us reach out to the Colombian shops.
Have you laid off staff?
We closed the business for a month and a half in response to the preventive quarantine. During the process, the CM was the only one who lost his job.
Are you selling more, less, or the same?
Our sales at this time are at 50% of normal.
Are you doing online orders, curbside pick-up, or in-store?
Initially, we sold at home during the quarantine. Now that we have the guarantee to operate, we continue to make online sales, home deliveries, and on the sales floor.
What is your safety protocol? How has that changed?
Our security protocol consists of carrying out complete disinfection of the common areas every three hours, disinfection of customers upon entering the store (soles of shoes and hands), these customers must have the bio-security elements (gloves, masks) and there can be no more than four clients at once. Store doors are closed to control entry and all store employees are required to take their temperature daily, use bio-security items, and change clothing upon arrival at the store.
How have the customers changed? Are you noticing more core cyclists or new riders?
The clients have been both, some new looking for bicycles to transport or to start rolling - since cycling is one of the safest practices at the moment. On the other hand, we have accomplished cyclists looking for trainers, simulators, and items to continue their training. In proportion, there have been more new ones!
What is your prediction of long-term outcomes? How do you believe this will impact you over the next year?
I think that this year our strategy will change and start to focus much more on mobility, strengthening online sales, and technical service. However, the volume of sales is going to be affected, given the uncertainty and the loss of jobs. In general, people feel insecure about making large expenses and if this does not change I think that the staff could have to be reduced to keep costs low and the business profitable.
Focus Bikes - Bogotá, Colombia
Focus is a relatively new bike shop in the north of Bogotá, focusing on high-end bikes they started to work building a bike community, through rides and events been guided by their ambassadors, such as Santiago Botero (former Tour the France Polka Dot Jersey champion and ITT World Champion). Since the community is an important way to grow the business the quarantine has changed the way they work. focusbikes.com.co
Have you laid off staff?
No, since it is a small team, nobody has lost their job.
Are you selling more, less, or the same?
We are still selling but sales have fallen by 70%.
Are you doing online orders, curbside pick-up, or in-store?
We are doing online orders, curbside pick-up, and in-store sales with restrictions. Sales are mainly through e-commerce.
What is your safety protocol? How has that changed?
It completely changed. People can enter the store but only two people at a time. They cannot try on clothing or accessories.
How have the customers changed? Are you noticing more core cyclists or new riders?
We are seeing current cyclists looking for cheap bikes to use with trainers, also some new cyclists who are looking to change the activities they used to practice. Gyms and places where many congregate for indoor cycling are closed.
What is your prediction of long-term outcomes? How do you believe this will impact you over the next year?
Although the impact is now very strong economically, we see a great opportunity in the bicycle segment. We believe that this situation will bring new cyclists and that we will all be more aware of the need to practice safety protocols in sports such as cycling.
Quality Bicycle Products - Bloomington, Minnesota
Quality Bicycle Products, or QBP, is the largest distributor of bicycle products and accessories in the world. QBP stocks and ships parts and supplies to over 5,000 bike shops across America. Additionally, QBP has its own "in-house" brands of parts, accessories, and even bikes. Some of those brands include Salsa, Surly, All-City, 45North, Teravail, Foundry, Whisky, Problem Solvers, and Dimension, to name a few. The distributor has warehouses situated throughout the US to serve retailers quickly, enabling them to ship parts to most areas within a short time span. Having such a wide network, QBP has a strong pulse on the industry and what is or isn't selling. qbp.com
Have you laid off staff?
On April 2 we laid off approximately 12% of our workforce in response to a dramatic drop in sales as a result of the pandemic. Layoffs affected every department within the organization. It was a terribly painful decision for everyone involved.
Are you selling more, less, or the same?
Our business has rebounded substantially since the pandemic began (as well as since the layoffs). The bike business has been booming in the US since the beginning of the first couple of weeks of April.
Has the way you process and fulfill orders changed?
We haven’t changed any of our processes, but we did make multiple changes to help retailers, such as more flexible payment terms; easing the qualifications required to take advantage of our Retail Fulfillment Services (click-and-collect); allowing retailers to ship complete bikes to consumers; and more
What is your safety protocol? How has that changed?
We now require everyone inside of our distribution centers to wear a mask. All office people now work from home. We clean and sanitize our facilities daily. We aren’t allowing visitors to our facilities.
How have the customers changed? Are you noticing more core cyclists or new riders?
We sell products to retailers. Based on what’s been selling for the past 6 weeks, it’s clear that there is a new focus on value-oriented and service-related products at retail. People are dusting off the bikes in their garage and bringing them to shops for service. People are also buying BMX bikes, as well as bikes that retail for around $1,000 or less.
What is your prediction of long-term outcomes? How do you believe this will impact you over the next year?
I wish we had a crystal ball. Riding a bike for the first time can be a transformative experience for so many people. I think each of us can remember the first time we rode a bike as well as those first experiences of riding adventure, thrill and exploration. Those experiences are deeply powerful and moving. We believe that the industry has an opportunity to retain many of the new cyclists who came into the sport since the pandemic began, because of the power of their experience. I believe and hope that that’s the long term outcome.
79 Comments
Agree and disagree.
Businesses aren't using it as an excuse, management is looking forward the next year and two and knowing they may have a hard road ahead are taking measures to ensure they can weather a slow recovery. It's not an excuse, it's a reality and they're paid to try to stay ahead of the curve. Naturally if layoffs are an acceptable way to them to reduce cost without affecting operations too much they'll knock out the underperformers. But that doesn't mean we need to generalize and say that everyone who lost their job was an underperformer.
Wait. You're right. I'm sure some companies are using it as an excuse too. 'Oh good if we do a 'covid restructure' we can get rid of everyone we don't like without legal/hr blowback'. It is what it is.
Oh for sure. There's also tons of asshatery in business. I've seen high performers (who could track their performance to bottom line dollars) let go as part of a cost cutting measure because they 'made too much' and their work spread out to existing employees (who in this situation couldn't perform so it was a flustercuck). But that was just a very poor management decision not the norm. I agree the underperformers are usually the first to go.
They laid off their employees when it was most advantageous for the employees, many of them most likely got a pay raise on unemployment here in the states.
Show of hands please
The fact is that many businesses' used the Governmental Corona scare as a reason to get rid of some fat, or simply PITA staff members without the issues of paying unemployment long term. Reading some other comments seems that in Canada the ongoing costs are the same for an employer, I know this also would potentially vary state to state in the US. I happen to be in an "At will" state for all parties, so, no matter what, we can fire just about anyone for just about any reason at any time.
It is truly DISGUSTING that people could receive more income to NOT work as opposed to their hourly wages. We even had some staff trying to make the comparator (make more on unemployment or working)...and being as they did it from facility computer systems, they were fired (with cause).
Now people (entry-level) - MA, CNA, etc, you know, lesser educated people who work at a scale they deserve...well, they do not want to go back to work and take the pay cut for working. Plus, we have initiated drug testing for staff as they return. Being as drug and alcohol usage took a major spike during the stupid shut down, we are testing many prior to their resturn to the facilities, just as if they were a new hire.
what?!?!
you're questioning basic principles of economics, human nature/motivation, and the law of the harvest?
But, you know, you do you...
Brahahaha!
I'm not sure what you disagree with but I agree with alot of your statements in this thread. Just be careful vilifying businesses. And be careful if your position is that people are not held accountable for their actions.
It's been a long time since I've owned a business (small service business in college), but the burden on the business owner who is taking the risk, trying to add value for their customers so they can retain their business, and retaining valuable employees is very difficult.
And I think everyone would agree that an employer who can create a positive work environment that attracts talent has a competitive advantage. Fortunately I work for one right now (and would like to stay there) but that hasn't always been the case.
But back to this QBP announcement I agree that this is really awkward and as written, puts QBP in a bad light.
* side note: QBP had reduced their free shipment minimum to $300 for a quick stint. Gone now...... BTI on the other hand has kept it going. BIG THANK YOU to BTI. Margins are almost nil when you try and keep people off the net and shipping discounts save those fractional slices. Baffles me that Jenson/Universal/Wiggle can sell something 2 dollars more than I can buy it at wholesale, then offer free shipping! AMAZING!
I reckon there’ll be a LOT of used bikes for sale once the gyms reopen.
Seems like another article that forcefully went to single rider bike shops only and left out the huge consumer base which is mountain tandeming....or mandeming if you will.
I can't even about those numbers. I heard that Trek is backordered 15,000 bikes right now. That's bikes shops have ordered and committed to,that in many cases are presold.
www.youtube.com/watch?v=-trzGcUXUmo