Bicycle Retailer reports that both QBP (Quality Bike Products) and TPC (The Pro’s Closet) instituted staffing cuts brought on by the glut in retail inventory.
“As the largest distributor of bicycle products in North America, we are impacted by an industry that is still searching for balance between supply and demand. Currently, there’s just too much surplus inventory,” said Rich Tauer, QBP President. Painful as the cuts were to make, Tauer says it’s necessary as the industry tries to strike a balance between supply and demand.
QBP brands include Salsa Cycles, Surly Bikes, All-City Cycles, 45NRTH, Teravail, Whisky Parts Co., and MSW. I’m a Surly rider, which is why this article caught my eye.
Paul Calandrella, GM of The Pro’s Closet, echoed similar sentiments. “The unprecedented amount of discounted, new bike inventory in the market poses a particular challenge for our business model..”
Bicycle Retailer hints there may be more industry layoffs on the way.
Typically news like this would spur demand since it’s technically a buyer’s market. But if retailers are able to manage expenses in line with demand, we may not see deep discounting. I’m keeping an eye on these developments and will share them as they unfold.