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Performance Splits with Specialized, Giant; Renames Supergo Stores
AUGUST 01, 2005 -- ASPEN, CO (BRAIN)—Performance, the nation’s largest
bicycle retailer, has discontinued its relationship with Specialized and
Giant. Performance is also overhauling its 10 Supergo stores into large-
scale Performance operations.
Late last week Giant and Specialized announced, individually, that they had
terminated their relationships with Performance in agreements with the
retail giant. Performance chief executive officer Garry Snook, however,
said the decision to end business with both brands was not an agreement
between parties, but exclusively a Performance decision.
Performance had been the largest single customer for both brands.
Specialized and Giant both announced the split as positive moves for their
remaining dealers.
“Our vision is to be the best bike brand in the world”, said Specialized
founder and president Mike Sinyard. “To achieve this vision, we first have
to fulfill our mission of becoming the brand of choice of discerning
customers and dealers and the supplier of choice for the full-service
dealer. We are constantly re-evaluating our channels of distribution and
making adjustments to help us fulfill that mission.”
Steve Boyd, Giant USA’s director of sales, said the “decision supports our
core goal of remaining dedicated to our loyal dealers while also creating
new opportunities for retailers interested in working with Giant.”
Performance’s reason for discontinuing the two brands, according to Snook,
was surprisingly similar to an oft-heard complaint from smaller, mom-and-
pop retailers: frustration with manufacturers’ demands.
“We believe that we should be the party that decides how to be the retailer
in the relationship. We believe that we should decide where a store should
be opened, and how they should be merchandized,” Snook said. “Don’t get me
wrong, we spend a lot of time working with our vendors in a partnership.
But working with them, it absolutely was not a partnership.”
Performance recently opened a flagship 12,000-square-foot store in Atlanta,
a decided departure from the company’s traditional 5,000-square-foot
operations. Performance has a few other large stores, a format with which
it has been experimenting.
“What we wanted to test was whether we could position a Performance store
close to where Supergo is in size without the big three of Trek, Giant and
Specialized,” Snook said. “And they are working, they are on sales plan.”
Another test in Atlanta was the addition of Schwinn/GT to the mix of Fuji
and Iron Horse. Schwinn/GT bikes will soon be carried in all Performance
locations.
“They have been like a breath of fresh air,” Snook said, referring to
Pacific Cycle, which owns Schwinn/GT.
In addition to the Supergo stores, Performance will convert ten of its
largest Performance shops into the large-scale format.
“The larger stores will carry everything that the small ones do, but with
more high-end product,” Snook said.
Performance will keep the Supergo Internet and mail order business intact
with the Supergo name.
For the complete story, read the Aug. 15 issue of Bicycle Retailer and
Industry News.