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Tesco is coming - don't panic, Tim Dawson (2010)
Original article first published in The
Sunday Times on 2 May 2010
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Sometime around the age of nine I fell in love with bicycle shops. Not
only did my local shop bring my two-wheeled pride and joy back from the
dead at regular intervals, but all the equipment hanging on crowded walls
provided a cornucopia of potential upgrades if only my pocket money
would stretch to it. Its an addiction that I still suffer from today.
No surprise, then, that my first reaction to the news that Tesco has
started to open bicycle sections within its stores was one of horror.
If the giant retailer which is testing a specialist bike section
in eight shops around the country, including Chesterfield in Derbyshire
(pictured above), and West Durrington in West Sussex turns its
buying power and retailing nous to the bike trade, then wont independent
stores be doomed?
Surely, they will go the way of the butchers, bakers and after
last weeks announcement that Tesco is planning to build mini
villages clustered around its stores housebuilders and estate
agents. RIP high street cycle shop; hello aisles full of pile em
high, sell em cheap made-in-China disposable bikes?
There is nothing new about supermarkets selling bikes, of course. All
the big chains have offered discount bikes at one time or another, and
last year Asda even enlisted Sir Chris Hoy to front up its offer of bicycles
for as little as £50.
Most serious cyclists have stayed away, however. Thats because
the supermarkets have tended to sell low-spec bikes that come in boxes
for self-assembly. That might be handy for buying your five-year-old a
bike but if you wanted to deal with properly trained staff and buy a high-spec
branded bike it was no good at all.
Tesco has tried to up the game. Its range is still aimed at family and
childrens bikes priced between £100 and £200
but it also has a dedicated space within each store and a separate
customer till. Qualified staff are on hand to advise potential customers
and undertake the necessary preparations and checks. The kind of post-sale
service that hitherto was the exclusive domain of real bike
shops is also included, promises the giant retailer.
With the steep rise in interest in cycling, it is a clever move. But
will it sound the death knell for traditional retailers? On balance, I
suspect not.
In its annual survey of bicycle retailing, the trade magazine Bike Biz
found that more than 70% of bicycle shops saw their turnover increase
by 10% or more during 2009 which was hardly a banner year for high
street shopping in general. A fifth of bike shops saw turnover rise by
30% or more.
Not only that but new small stores are also opening in record numbers.
So although the big boys are starting to target the market, it seems the
smaller stores are still in rude health, and growing.
To survive and prosper, small bike shops need to recognise the devotion
that they attract from people such as me and maintain the kind
of service that keeps us coming back.
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