Trek buying out all WA TBE stores?

[Mububban]

So this seems to be happening. Which maybe ties into Trek's successful gamble to jump all other manufacturers and have way more stock than anyone else : viewtopic.php?f=86&t=105062

I hope this doesn't mean they are only going to stock Bontrager gear. TBE was great for variety of brands. Bont stuff is good, but only having one choice won't fit everyone's body/taste/budget.

Anyone heard any specifics?

[gsxrboy]

If this is going ahead it certainly makes for interesting times in the future. Manufacturers pushing into retail is happening all over the place to start to fight against online stores and (increasing) online only manus.

99 bikes are planning to have 10 stores in WA as well so that might be a help in pushing TBE to move along.

[Thoglette]

Ah, more "you will buy what we want to sell". Doubleplusungood.

[AUbicycles]

While this means a change for the ‘new’ Trek stores, it is not unlike Giant Stores... it is an option but others stores will have range.

99bikes is a bit different with Merida and other bike brands and a variety of brands for accessories. More a classic chain-store.

[MichaelB]

Called 'Vertical Integration' of the supply chain.

Its the same as any store that focuses on a single brand because of the deal/support they get.

Maybe it's because the TBE owners want to do something else, so Trek taking advantage.

Don't quite get to see why it's doublepludsungood per 1984 ?

[Mike Ayling]

I read somewhere that Honda was buying back all their car dealerships and then were going to sell cars in every dealership at the same list price, no good going from desler to dealer looking for a discount.

Maybe Trek is planning something similar?

Mike

[dmwill]

Heard talk about this a few weeks ago and walking into a somewhat empty looking TBE today confirmed this.

https://thelatzreport.com.au/news/retai ... -retailer/

TBE has been my local goto for parts/accessories and service consumables for 10+ years. So it's a bit of a shame to see them transitioning to Trek (with Bontrager being the key brand for parts/accessories no doubt).

Guess I'll be looking elsewhere for bargain bottles of Stans sealant now

[Thoglette]

Don't quite get to see why it's doublepludsungood per 1984 ?

Economically, because oligopolies are rent seekers (hello Shimano) who become “to big to fail”.

Socially, because “Coke or Pepsi?” is not choice.

[MichaelB]

Don't quite get to see why it's doublepludsungood per 1984 ?

Economically, because oligopolies are rent seekers (hello Shimano) who become “to big to fail”.

Socially, because “Coke or Pepsi?” is not choice.

If Trek start cornering the whole market and then buying out all the other stores, then yes.

I think equating Trek buying out a chain making them an oligopoly is a bit of a stretch, but yes, that can happen, but unlikely.

Mind you, we live in strange times !

To me, there are many more worrying 'predators' in many industries, with the likes of Fleabay, Farceberk, Goooogle, Alilibababa et al being some of the start.

[BrownBike]

OTOH it's nice to see bike retailers doing well the last year or two, I imagine they have very fine margins a lot of the time. So if TBE is deciding to sell up while their price is high then fair play to them.

Still have 99 bikes, bikebug, and plenty of independents in town.

[Thoglette]

I think equating Trek buying out a chain making them an oligopoly is a bit of a stretch, but yes, that can happen, but unlikely.

I'd go as far as to call it The Plan: the big makers all go vertical and squeeze out the smaller brands.

They'll always be the odd independent but they won't be able to sell or service the big brands (as has happened in everything from watches to tractors)

A bit like Rupert Murdoch's takeover of the Australian media landscape which started off with a few amalgamations and remains ongoing (Ch 44 has been killed), still working on exterminating the ABC and SBS)

To me, there are many more worrying 'predators' in many industries, with the likes of Fleabay, Farceberk, Goooogle, Alilibababa et al being some of the start.

Agreed. Coles & Woolworths, The Big Four Banks, the aforementioned Murdoch empire, Unilever & Nestle, Hollywood to name just a few.

The key characteristic is when the companies work out that they're better off being "competition" in name only: they collectively build barriers to entry (via regulation mostly), remove alternate business models (regulation again, buy outs, exclusive supply deals, predatory pricing or govt subsidies) and form "industry bodies" to drive public policy (see regulation and subsidies)