By Don DiConstanzo
Editor’s note: DiConstanzo is the founder and CEO of Pedego, which sells franchise locations that sell Pedego e-bikes. The brand has more than 140 location in the U.S.
The recent Chapter 11 bankruptcy filing by the owners of Performance Bicycle should make it clear to anyone who is paying attention: the future of bicycle retail is in single-branded stores. It’s more evident if you look at other recent retail failures — Brookstone, Circuit City, Radio Shack, ToysRUs, Sports Authority, Sports Chalet, and Sears. The decline of multibrand retailers is undeniable. In contrast, look at the successful single-branded retail concepts like Apple, Nike, Tesla, Victoria’s Secret, Starbucks, Prada, Tiffany and Tommy Bahama.
Shopping today is all about the experience. It has to be a pleasure for the consumer. Multibrand retail stores make it a nightmare for the consumer and the retailer. Varying colors, styles, sizes, components and warranties among different brands make it a challenge for everyone. The multibrand stores also have to go it alone without the genuine support of the brands they stock.
One of the most successful ongoing retail business models is the car dealership. How many brands do they carry in a single location? …read more