Trek Consolidates EU Operation Indicates Company’s GM in Spain
MADRID, Spain – To improve the service level to its retailers, Trek decided last November to close its warehouse in Spain. “We better serve our customers directly from our European warehouse in the Wychen, the Netherlands,” said Olivier Pelous Trek’s General Manager in Spain and Portugal.
2017 proved to be successful for Trek Bicycles in Spain and Portugal. In the Spanish trade magazine CMD Trek’s General Manager in the two countries Olivier Pelous stated, “our turn-over increased by 6 percent to 25.4 million euro in 2017.”
European distribution center
Treks’ gateway to the European market, the ‘Netherlands Central Inventory’ (NCI) distribution center, is based in Wychen, a Dutch/German border town. Trek’s NCI can handle all shipments within 24 or 48 hours, depending on the distance. The lead times for dealers and distributors further away from Wychen, such as in Scandinavia and Italy, is from 48 to 72 hours at the maximum.
“With NCI we can give our dealers direct access to a much larger stock, faster and without any additional costs.”
Speeding up the supply chain
Trek’s representative on the Iberian Peninsula adds that, “For next year we expect that 80 percent of our sales will be manufactured in Europe. It allows us to simplify our supply chain tremendously while we can also speed up lead times to our retailers.”
How important speeding up the supply chain is for Trek was put forward by Oliver Pelous, stating, “In a sector that has become more competitive than ever, it is clear to us that in addition to offering an attractive brand and a competitive product, our success is based on being the best supplier for the stores.”
Olivier Pelous does not expect that “Trek Bicycles will start to sell online on a short notice in Spain and Portugal.
“In a challenging environment only stores that are well managed and add value to the consumer will remain. IBDs are under pressure more than ever, the market has suffered a saturation of stores, brands and product, which has led to a reduction of profitability of the stores. On the other hand, due to the growth of international operating online stores like Wiggle, Chain Reaction and Amazon, the margins are more than ever under pressure. At Trek we believe in the brick and mortar IBDs, they will remain playing the most important role for us in the future.”