News Article

Changes in Dutch Bike Retail Scene

Sales & Trends

VEENENDAAL, Netherlands (December 17) – Dutch bicycle retail chain Bikeworld is putting all its shops and formula up for sale. Bikeworld was not able to operate its 12 shops in Holland with sufficient profitability. Bikeworld was started in 1997 as a specialty part of Halfords Holland and the automotive division of the Macintosh Retail Group. […]

VEENENDAAL, Netherlands (December 17) – Dutch bicycle retail chain Bikeworld is putting all its shops and formula up for sale. Bikeworld was not able to operate its 12 shops in Holland with sufficient profitability.
Bikeworld was started in 1997 as a specialty part of Halfords Holland and the automotive division of the Macintosh Retail Group. Theo Hendriks, Managing Director of Bikeworld says that the sale is not due to a failing formula. “That proved to be OK. However, during the past four years it was extremely difficult to realise sufficient profits. Our expectations for the short as well as the long term are that this situation will not change. With that in mind you must have the guts to stop.”
Particularly the smaller Bikeworld shops with lower annual turnovers were faced with profitability problems. Shop staffs have been informed beginning December and the shop managers got an offer to buy their shops. Other parties in the Dutch bike retail scene have been approached to take over the Bikeworld formula. In case of a individual takeover of a Bikeworld shop it will discontinue the name and logo. With a suitable takeover candidate for the formula Bikeworld may be continued. According to MD Theo Hendriks negotiations with candidates are in process, with the intent to reach an agreement before the 2002 summer season.
Next to Bikeworld, Hollands’ biggest bicycle retailer Euretco is also facing changes. Euretco operates over 200 franchise member IBD’s under the Profile shop formula, and also owns a number of bike shops. Euretco has recently sold five of their own Profile shops to their managers. Reason for the sale is the fact that these shops did not reach the annual €500,000 turnover. In the perception of the Euretco management, these small dealers are too vulnerable, but the use of the Profile formula is part of the deal to independency. Euretco will on the long term keep around 40 wholly owned big dealershops. (AH)

Comment on this article