Accell Boosts Efficiency at US Operations
KENT, USA – The first results are becoming visible of the integration of Accell Group’s US companies. As Seattle Bike Supply (SBS), Raleigh, Currie Technologies and others are integrated in Accell Group North America since the beginning of the year, the company started restructuring its distribution network by closing warehouses.
According to a report by the US trade publication ‘Bicycle Retailer & Industry News’ the distribution restructuring of Accell Group North America will lead to the closing of three warehouses. One is already closed; the SBS facility in Dallas, Texas. This month two others are to follow; SBS warehouses in Rancho Dominguez, California, and Reynoldsburg, Ohio. These two are to be integrated into nearby located existing Raleigh warehouses in Ontario, California, and Pataskala, Ohio.
SBS’ distribution center Kent, Washington
Changes are also to take place at SBS’ current distribution center in Kent, Washington. From next year on it will only handle P&A. All Accell’s bike brands (as well as P&A) are to be shipped to dealers from the distribution centers in California and Ohio.
In its last month published trading update Accell Group NV stipulated that by the end of this year the integration of the companies in the United States will be completed. Combined with the restructuring of the holding’s bicycle production in The Netherlands Accell Group expects the related costs to amount to a total of net € 3.0 million.
Share efficiencies and synergies
Steve Meineke (former CEO of Raleigh USA) and now CEO of Accell Group North America stated earlier this year that the integration of Accell’s US companies must take them to a higher level, is to integrate them as well as to have them share efficiencies and synergies. Accell Group North America is also to bring the competition with Trek, Specialized and Giant USA to a higher level.
To take on the ‘Big Three’ of the US market and in particular their single brand dealer strategy, Accell Group North America is to use the buying power of the holding company through its Taiwan trade-arm Derby Trading (recently renamed into Accell Trading Company), while the activities of Seattle Bike Supply will be stepped up including a B2B portal. All this is to bring a multi-brand partnership to the US dealers with more choice, innovation and service.
World’s biggest bike companies
Looking at the competition Accell Group with its subsidiary in North America is taking on; currently US based Trek holds the number three position in the ranking of the world’s biggest bike companies with an estimated sales turnover of 1.1 billion US Dollar. Shimano holds the number one position in this ranking with a US$3bn turnover while Giant stands at second place with 1.8bn. Accell holds the number 4 position with 1.0bn in US dollar turnover.