BREDA, Netherlands Dutch retail organization Biretco, owner of among others the Profile bike shop formula, is planning a strategic answer to earlier announcements by competitor Halfords NL to substantially expand its bicycle operations. To tackle Halfords attack on the Dutch bike market, Biretco will
BREDA, Netherlands – Dutch retail organization Biretco, owner of among others the Profile bike shop formula, is planning a strategic answer to earlier announcements by competitor Halfords NL to substantially expand its bicycle operations. To tackle Halfords’ attack on the Dutch bike market, Biretco will expand the number of Profile shops in the Netherlands from the current 275 to about 475.
Halfords intentions on acquiring a bigger piece of the cake in Holland and Belgium were announced last June by Managing Director Paul Burger. Next to an expansion of the offering in bikes with former Dutch A-brand Union or other brands like Dahon for folders or Renault for MTB’s; Halfords’ growth strategy also includes an expansion of the number of Halfords outlets to 200 in 2010. Currently the chain store specializing in bicycles, bicycle products and car accessories, has 150 stores of which 10 are located in Belgium. About 110,000 bicycles were sold there in 2005 which translates into a market share of about 10% in Holland.
According to Biretco’s MD Ron te Riele, Profile has its answers ready on Halfords’ expansionism. “It’s Biretco’s mission to ensure a healthy and effective retail network. A further expansion of our Profile network is in the interest of our suppliers and caters for excellent distribution methods in which brands are effectively positioned and marketed. It also ensures the right after sales service to consumers. This is something Halfords can not offer also because it is targeting different price-brackets than what the suppliers of branded bikes are looking for.”
Biretco’s strategic answer stands for setting up shops in areas in Holland where at least 17,500 inhabitants are living. According to MD Te Riele an average Profile bicycle store can be profitable in such areas of which 200 are still not serviced. And with that the number of Profile shops will rise to 475 with which Birectco is further tightening its already firm grip on Europe’s strongest bike market.
Related website: www.biretco.com