Mountain Bike Reviews Forum banner

1 - 8 of 8 Posts

·
Tribe Member
Joined
·
873 Posts
Discussion Starter #1
Just read this from one of the best placed industry trade magazines around...

Performance Splits with Specialized, Giant; Renames Supergo Stores

AUGUST 01, 2005 -- ASPEN, CO----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
 

·
Registered
Joined
·
2,585 Posts
I think it will probably be a good deal for the consumer eventually, doesnt make any sense to have Supergo branded products and Performance Brands. I noticed Performance has been selling some of the excess Supergo inventory locally. If you looked at the bike prices you could see the Specialized and Giant were dictating pricing to Performance and Supergo. At the local Supergo I asked about Specialized Tire pricing and he said that Specialized prohibited discounting their tires.

I think the real question for Performance is whether they can replaces the bikes with a quaility brand or develop their own in house brand. REI has been fairly successful with its own brand of Novarra Bikes. I am not sure if Schwinn can be that brand since its also being sold at places like Wal-Mart. It would be interesting if they could get GT/Schwinn out of Wal-Mart etc. and establish the brands as quality bikes again.
 

·
Premium Member
Joined
·
5,105 Posts
borregokid said:
I think the real question for Performance is whether they can replaces the bikes with a quaility brand or develop their own in house brand.
They already started on the Road Side. Look at the Scattante bikes on the Supergo side and the Topino or whatever they are called Performance bikes.
 

·
contains quinine
Joined
·
4,639 Posts
borregokid said:
I think the real question for Performance is whether they can replaces the bikes with a quaility brand or develop their own in house brand. REI has been fairly successful with its own brand of Novarra Bikes. I am not sure if Schwinn can be that brand since its also being sold at places like Wal-Mart. It would be interesting if they could get GT/Schwinn out of Wal-Mart etc. and establish the brands as quality bikes again.
My lbs is a Schwinn/GT dealer, and they're making nice high quality bikes again. And they may be very easy to work with from Performance's side, as I'm sure they'd be happy to start moving more volume.

I'll guess that Performance makes their own branded mtb's within the next 18 months to sell along side the b-level bikes they already stock.

I'll also guess that the Specialized/Giant lbs's near Performance stores are estatic!
 

·
Tribe Member
Joined
·
873 Posts
Discussion Starter #6
Performance had thier own line---long ago

Debaser said:
My lbs is a Schwinn/GT dealer, and they're making nice high quality bikes again. And they may be very easy to work with from Performance's side, as I'm sure they'd be happy to start moving more volume.

I'll guess that Performance makes their own branded mtb's within the next 18 months to sell along side the b-level bikes they already stock.

I'll also guess that the Specialized/Giant lbs's near Performance stores are estatic!

At one time, Performance had thier own line of bikes and did not sell anything but there bikes. They were nice and probably made in the Giant factory. Before Schwinn/GT were bankrupt, they were at my local Performance along side Giants. Specialized was never in any of the Denver area Performance's.

Since Performance went on a buying spree, they need to consolidate everything into one place. Dont be suprised to see a new line of bikes that might be made in the Kinesis Factory in Oregon or Taiwan. Gary Snook's brother in law, I think is CEO of Kinesis USA, Michael Novar.
 

·
contains quinine
Joined
·
4,639 Posts
yetirich said:
At one time, Performance had thier own line of bikes and did not sell anything but there bikes. They were nice and probably made in the Giant factory. Before Schwinn/GT were bankrupt, they were at my local Performance along side Giants. Specialized was never in any of the Denver area Performance's.

Since Performance went on a buying spree, they need to consolidate everything into one place. Dont be suprised to see a new line of bikes that might be made in the Kinesis Factory in Oregon or Taiwan. Gary Snook's brother in law, I think is CEO of Kinesis USA, Michael Novar.
yup yup.

Supergo has Specialized line, until they run out, I guess. And it certainly appears that Performance is beginning to reproduce their bike line, with the road this past year.

I remember their old bikes, just as I do the old Macalu steel bikes from Excel (which were darned nice).
 

·
Group Hug Participant
Joined
·
1,112 Posts
Maybe

this will allow Performance to focus on that little thing called "customer service?"

Doubt it....
 
1 - 8 of 8 Posts
Top