Written by JP Partland
MEADOWLANDS, N.J. (BRAIN) — We asked retailers and suppliers at this week’s CABDA East show about Trek’s planned “rightsizing” program and what it means for other industries .
Larry Black, Mount Airy Bicycles, Mount Airy, Maryland (former Trek dealer):
“I heard they were planning a 40% reduction in SKUs, and I think that’s a great idea. Most people should do that. This has been a major stumbling block since I started selling Trek in the late 70s. This has been a serious stumbling block: too many models, too many colors There are too many…
“As for the 10% cut, maybe a workforce, headcount reduction, whatever that means? Well, based on my experience, I think a lot of these companies are trying to grow artificially. . They are trying to grow horizontally rather than vertically. I would rather have vertical growth, meaning more honesty and better service. Less but better.
“Trek has tried to do too much. They’re now taking on Redburn used bikes. I’ve owned 5,000 used bikes, so I know more about used bikes than they do. But I think it’s just a complex issue, and some of it can take advantage of consumers in the wrong way. The downside is that some of the consumers who think they need variety The thing is, some people don’t really need variety. I can tell you from experience that right sizing is one of the smartest things anyone can do, not just Trek.”
Marc Cianfrone, Pop’s Bicycle Shop, Somerville, New Jersey (Trek Dealer):
”I think they are ultimately doing the right thing. 
Perhaps it should have been done a long time ago, but the fact that they’re finally starting to recognize some of the issues we’re facing, not just Trek dealers but the industry as well, shows that it’s about time. It means that it has come. There will probably be a little more confusion, but hopefully it could give other suppliers a roadmap to move in the same direction. ”
Benita Warns, co-owners of Midwest Bicycle Supply and Michael Recycles Bicycles of St. Paul, Minn.
“It doesn’t surprise me in the least. I’m based in St. Paul, which is home to the world’s largest bicycle parts supplier, and they’ve laid off people in the past few months. They even canceled orders for parts that were meant to be stocked, even as companies like Trek and other major bike companies ultimately cut jobs, cut jobs, and downsized. I’m not surprised at all. It’s going down. 
We are one of the rare places that actually held one last year.
“For the store, obviously if you have a little less product, you have less to choose from, but on the other hand, it might be a plus. Then the store can have a little more freedom without having the product.” “You have to buy everything from Trek, you’re not allowed to buy from anyone else. It’s very restrictive, almost protectionist. The store owners… Who are you? The store is supposed to be owned by the store owner, not their supplier.”
Amos Bramble, owner of Brumble Bikes in Westerly, Rhode Island:
“I think that’s probably the right choice. It’s going to be painful for everyone and I hope it leads to better business models in the future and frees us from trying to cover all the bases. , I don’t think the bike market supports that. Some dealers are dependent on certain SKUs being cut and will be affected. They may have to fill it with another product line. Yes, but it may be difficult.”
Peter Henry, former owner and current director of Landry’s Bicycles, Massachusetts (Trek dealer; not pictured):
“They’re about 30 years late in making that move, especially when it comes to reducing the number of SKUs. If you can streamline your product offering, reduce confusion, reduce SKUs, reduce inventory issues, it’s going to help retail Merchants get more profits and retailers get more profits too. So I think this is a very smart move on their part and why they are finally doing it now. I don’t know why we’re doing it, probably for the wrong reasons, but whatever the reason, we’ll accept it.”
(For stores) “If right-sizing means lowering service levels to retailers, that’s a problem. That means the store’s sales aren’t high enough to hit that number, and their salary levels If they don’t have enough to support them, then obviously they need to deal with it. If they go out of business, it’s going to be even worse for the retailers. So if they don’t do what they have to do. However, reducing the number of SKUs on our bikes is entirely positive and long overdue.”We hope other suppliers will do the same. ”
Phil Cohen, Chain Reaction Bicycles, Evans, Georgia:
“In these times when everyone is facing challenges, no one is immune to such factors. I’m trying to do what I think is best for our business. I only think of it as a company.”
(Could it be negative for retailers?) “If a company doesn’t provide the necessary support to its distributors, it can be negative. I know there’s going to be chaos and it’s probably going to be tough.”It will take more than a year for things to settle down. Until then, it will be a tough road, and no one will be spared. ”
Shane Hall, Bicycles New York:
“It’s not surprising. After we come out of the pandemic, most companies will still have a lot of product in their warehouses, and many have overproduced over the past year or so, forcing them to sell bikes.” I no longer get it. 
So you can imagine the need to cut costs and reduce spending. Since the end of the pandemic, the used bike market has exploded as people stop riding, putting some brakes on new car sales.
“I think the challenge for us is to find out what the new normal is. This is something we’ve been talking about for a while. We know what the pre-pandemic normal is. Sales have been through the roof during the pandemic, but the question is where are we now? What to buy, what to expect, and how much? Where is the new normal of how much product do we stock? How much product do vendors actually buy in a season? We need to figure that out now.”
“We haven’t seen any cuts from other suppliers yet. We’ve seen bicycle selling prices go down, and if you look at other industries you’re seeing cuts from big companies, so this is Not surprising.”