Wiggle and Chain Reaction Cycles announce today that they are to merge to further strengthen their position in the global online retailing world of cycling, running, swimming and triathlon (tri-sports) products and accessories. The transaction is subject to a number of regulatory approvals, including merger control clearance from the Competition and Markets Authority (CMA).
Together the combined business will be able to supply a broader offering and a stronger platform with which to attract new brands and compete in the wider cycling and accessories market. Financially, the combined business will have revenues in excess of £300m.
Stefan Barden, Chief Executive Officer of Wiggle, said:
“
In the global online retailing market in which we operate, there is a compelling industrial logic for our two businesses to come together to become a stronger force. We have long respected Chain Reaction Cycles as a business and share its values and commitment to delivering the best possible price and first class service for its customers. Like us they have a deep seated love of cycling. The combined business will offer all customers an extended range of brands and products, with Wiggle’s strength in tri-sports and road cycling complemented by Chain Reaction Cycles’ strength in mountain biking, BMX and road cycling too. The deal propels Wiggle faster towards its objective of building a global online champion and a major British export success story.”
Chris Watson, Managing Director of Chain Reaction Cycles, said:
“
This is an exciting new chapter for the Chain Reaction Cycles brand. Since the business started in 1984, we’ve grown strongly from our mountain bike origins in Northern Ireland to meet the needs of more MTB, BMX and road cyclists across more countries. Coming together with Wiggle is a great way to continue that growth, as a global force in cycling and a leader in technology, eCommerce and innovation.”
MENTIONS:
@ChainReactionCycles
I hate building wheels, so they get lots of wheel builds from me, and not only are they one of the cheapest wheel builders i've ever found, but their builds are comparable to the best i've seen.
It seems to me that the local LBS's best opportunity to remain relevant and competitive lies in service, not in product.
@mattfitz everything American is like 30-40% more expensive than it was last year, so compared to the other developed countries, yeah, we're whining about bike prices. That said, you've gotta assume 99% of the users on this site enough spend a poor country's average salary on bike shit just for fun, so this site's demo is generally quite privileged.
We like giving advice to people when they are looking to upgrade, but if there is anything that will hurt a small business, its spending the 30 min to an hour (sometimes 2) of our valuable time explaining build kits, fork servicing, etc, to people who will turn around and go buy from somewhere else. And granted, our biggest customer base is the person using their bike for commuting, and when it comes to re-gearing or changing handlebars, they have no idea what to do or how to do it. Of course we would rather have people buy parts through us (and they do), but when business is done the right way, the online giants aren't killing us.
And it also is more appealing when our suppliers can get us the part in a couple days and the customer pays no shipping.
I use them for emergency parts sometimes.
We need CRC stores set up like an Argos for bikers in each major town.
Then LBS shops for people that don't do their own wrenching and need more support.
Or emergencies as I don't mind paying a premium for a component when I need something to save a day out.
P.S. Usually when they throw around the term "competitive" it means cutting jobs to increase profit...
I'll continue to support my LBS.
One of the reasons why CRC and Wiggle are unable to match the German prices is the additional costs involved in converting euros to pounds. For example, paypal charges a 3% currency conversion fee, which is 3 euros for every 100 spent (I'd rather pay for my Highrollers 3 euros less and have a couple of beers after using them), and that amount isn't nonsense. If CRG and Wiggle have a turnover of say 10k euros a day, they'd have to pay a 300 euros conversion fee, meaning 9k a month, meaning 108k a year. A lot of money.
We all know that Germans do it cheaper cause they feel they owe rest of the world for things they did to Poles and Jews back in the day ;]
All their aluminum frames are probably made from remaining MP40 they stash in their basements ;]
2 bike stores near mine closed this winter definitely probably due to online taking over. It's crazy that Crc is actually cheaper then Shimano Canada (who just raised prices)and cycles Lambert... Not a little cheaper a lot cheaper ultegra cassette is 55 Crc free shipping, Lambert is $70 plus shipping. Crc also has more in stock.
I buy all the stuff from Crc now and keeps the consumers happy. It's crazy that whole sets of brakes are only slightly more than just the brake pads.
I think some big distributers will fall and a lot of the middle men of this industry will be put out and the consumers should enjoy better prices all around which will be good in the long run
Kinda like the Yt model which will be the next huge thing bagging me in the nuts
. Already alot of people I know are buying Yt bikes
I can hardly wait to fix them
Changing world and the only thing you can't get online is service so that's where Lbs better shine
"the bike industry, where there is hundreds to be made"
Shimano is totally screwing over the LBS.
Concept stores here are taking off and weather or not that works in the Aussie market place time will tell, all I know is that we're going more into servicing and with the Australian consumer sentiment getting worse as the economy falters it'll be a fun trip down the rabbit hole for use..
- Will they be taking on Nukeproof & Vitus & Hotlines distribution?
- Will the companies merge or stay seperate and perhaps streamline (wiggle more towards road etc, CRC to MTB)
- If the companies do merge, is this the end of CRC in Ireland and the 500 jobs it provides.
Shops I use from Germany:
bike-components.de
rosebikes.de
bikemailorder.de
bike24.de
bike-discount.de
How will it affect both nukeproof and virus brands?
I use my lbs for service and installation, but prices here for parts in an lbs are 40% over Crc/German sites on big items.
What made a difference here, well they weren't just a bike shop, they were a home for my lifestyle. I could go there and browse, which was fine, actually encouraged, I bought stuff like grips and inner tubes, not much else but the staff still actually wanted to talk to me which was..... nice.
Once I'd bought my, essentials I'd guess you'd call them I'd pop up stairs for a steak sandwich and read a newspaper, then I'd have a coffee and chill out for a bit before returning to Mud Dock in the evening for possibly once of the best alternative club nights in Bristol.
Now its wasn't a big set up at all but it did have people who called it a home, somewhere to chill, somewhere that you could belong. I don't get this from 95% of all the LBS I visit now and its why I do most of my gear and component shopping online.
Now if anyone wants to use the strategy that Mud Dock used then I'd welcome it because an LBS just being an LBS is waaay long gone. Good luck to CRC and Wiggle in their merger but I'll still be looking for something different when I go shopping.
Anyway they asked me to do some carpentry work, saying they wanted to price match against Wiggle and ze Germans
We all end up hanging out on two wheels at the end of the day, who cares where the goods came from?
I have only used CRC and Jenson (when CAD was fairing better)
www.tbsbikeparts.com
usually the best pricing when they sold the items you want. Not a lot of choice but mostly just the good one
www.alltricks.com/?gclid=CjwKEAiAova1BRDS15OXjcug_FMSJACWNAKZuh0J-ey0nTjzZGdkumagcQs46xD5dPlP9dStKo9mjRoCvSrw_wcB
www.merlincycles.com
www.winstanleysbikes.co.uk
CRC started small and with nothing, built up to the position they are in with good business, along the way they have started local DH races - supported the local scene, sponsored many riders, launched Nukeproof and employed 500 people.
They are bike-world giants now but thats business - I know its a strange term in the bike world but a business goal is profit - weird concept huh!
The CRC family owners personal wealth is reported as £200million BEFORE the sale - They are wealthy almost beyond use now, why not sell on / retire?
Google ' Chain reaction story or visit' its all in there.
I do know how CRC works and also know their background very well! I remember being a customer when they only had a small shop and nobody had heard of them, I've supported them ever since. I have friends that work for them on various departments.
Being from Northern Ireland it worries me how this will affect our economy.
Obviously any business goal is to make profits I'm not stupid!