to open up to 250 retail stores and service centres in US

Online retailer has announced an ‘aggressive’ plan to open up to 250 locally-owned retail bicycle shops and service centres in the United States.

“We are excited to announce today our plan to open up to 250 professional bicycle shops in the United States,” said company spokesperson Natalie Cristino. “The stores will be locally-owned, will sell Italian and European cycling products, and will be funded using a similar programme to our Cost-Plus Program for the pilot store.”

The Cost-Plus Program (CPP) applies 10% to its landed cost plus credit card fees and shipping, in order to arrive at an article’s selling price to enrollees.¬†Participation in the CPP is $100. The fee has to be paid on or before 31st January and the Cost-Plus savings begin on 14th February. If a blended gross margin of 43.75% is assumed at retail, then the breakeven for Clients to participate in the CPP is $228.57.

Enrollment into the CPP began on 1st January and will end on 31st January. It will launch on 14th February and remain in effect through 31st December. If a critical mass of clients has not enrolled into the CPP by 31st January, the programme will be cancelled and any fees paid by clients will be refunded in full.

“We recognise that 250 stores is grandiose, so we are focusing our immediate attention on opening a single location in order to prove the model,” added Cristino. “There is a hard raise in mind and we are hopeful our nearly 35,000 clients historically, and over 5,000 new clients this year will understand the brevity of the offer and that there is broad participation; this is in the realm of generous employee discount.”

Read the January issue of BikeBiz below:

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