Cycleurope Transforms Retail Network in France

ROMILLY-SUR-SEINE, France – Cycleurope in France is busy transforming its Velo & Oxygen bike shop network. The bike maker is installing a ‘Premium’ concept in its national network of some 450 affiliated stores. With the new Premium concept Cycleurope is modernizing its dealer network in France while it also must bring about a more common identity.

Bruno Gazet, director of sales and marketing at Cycleurope France says that the new concept is currently being installed and that some fifty shops already have been re-build. “We aim to reach 200 refurbished stores in 2010,” says Gazet who explains further that dealers that want to become a Premium Bike & Oxygen store must meet certain criteria. These criteria are that the Cycleurope brands Gitane, Puch and Bianchi must be represented in the stores as well as the manufacturer’s P&A brand Spectra.

“This is obviously a minimum requirement. Then we also look at the area of the store and at its geographical location. If the store is strategically important for the network we meet the challenge to transform the shop together with the dealer.”

Gazet further explains that with the Premium concept dealers can benefit from special bike collections, a range of services as well as special discounts. “And that without any fee. We prefer to focus on the motivation of the retailer and its relationship with Cycleurope. In the end, the Premium dealer has everything to gain, not only thanks to the increase of traffic to his store by attracting new customers, but will he will also see its turnover grow by 20% in the months following the renovation.” Generally, the renovation of the storefront and the store interior cost about 20,000 euro.

Velo & Oxygen is one of a few retail concepts in Europe that is directly connected to an OEM. Cycleurope, which is part of the Stockholm based Grimaldi Industri AB holding company, is the leading bike manufacturer in France. The company saw during 2009 its results improve compared to 2008 and to the beginning of this year.

In January Cycleurope’s Romilly facility operated only two out of every four weeks. The 50% production was maintained up to mid March. Gazet claims that since then the order intake became much better and even to such levels that orders were difficult to meet on time because of the lack of components. That part-time unemployment due to the crisis last winter is long gone.