High Gear Cyclery go out of biz?

terrabike01

terrabike01

Well-Known Member
Went by the High Gear Cyclery store in Millburn and saw they closed up. Saw a sign that said "The shop closed due to reorganization" at the back door. Then in the front window a big "For Lease" sign. Sounds to me like they are out of business. Anyone know if the Sterling location is closed as well? Wonder why they closed up?
 
Dont live in the area anymore but this is on their website
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Word on the street is that both stores are closed. All one has to do is look at the number of Amazon packages being delivered locally to understand why small retailers are closing everywhere . Small retail has become a very tough business model . I’ll try not to soapbox too much but honestly if you don’t support a retail store ( not just bike shops ) that is locally you run,you’re going to see it go away in the next number of years, it’s a sad fact. With in the last 10 years the number of bike shop to United States has been cut in half. This is not just based on the way that people are shopping though, Participation in cycling is definitely down. On behalf of the industry that I love and all my very Close friends that work in bike shops all around the country, I ask that you consider supporting your local bike shop a little bit more this year. There are a few shops that are really doing well right now and most of the time it’s at the expense of another shop locally Failing.
 
jdog said:
Word on the street is that both stores are closed. All one has to do is look at the number of Amazon packages being delivered locally to understand why small retailers are closing everywhere . Small retail has become a very tough business model . I’ll try not to soapbox too much but honestly if you don’t support a retail store ( not just bike shops ) that is locally you run,you’re going to see it go away in the next number of years, it’s a sad fact. With in the last 10 years the number of bike shop to United States has been cut in half. This is not just based on the way that people are shopping though, Participation in cycling is definitely down. On behalf of the industry that I love and all my very Close friends that work in bike shops all around the country, I ask that you consider supporting your local bike shop a little bit more this year. There are a few shops that are really doing well right now and most of the time it’s at the expense of another shop locally Failing.
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I agree with everything you are saying. Local run stores closing because everyone is buying from amazon or internet retailers. Most of the internet retailers dont even keep a inventory they are just web storefronts shipping direct from the vendor or supplier they deal with. The amount of effort and money it takes to a keep a small to medium business running is absurd and to be undercut by the internet is ludicrous. If the worlds biggest toy store can get knocked out just think about the local businesses that are taking a hit.
 
I think HG is being bought by Trek. As far as I knew the Millburn store was going to survive but I was told they wanted a new building. The Stirling store has a sign saying the Service Department is still open.

You guys should go to Halters and buy a Wahoo Kickr for yourself. It’s worth it.
 
Well the first problem is owning and operating a brick and mortar store in NJ is like paddling upstream 24 hours a day/7 days a week. Between the taxes and all the other costs related to doing business in this state its insane. I think one problem most LBS don't really stock a large variety of bike parts and accessories. I'm sure doing so needs a lot of space to do so plus tying up a lot of money I would guess. You can get whatever you want by a push of a button on your computer. I think where LBS can excel is to give good customer service and quick turn arounds on repairs.
 
HG failed because of mis-management by the owner. Trek has pulled out of their deal to take over the shop. I have additional unconfirmed info that I will share if confirmed. But it is almost impossible to do that.
 
terrabike01 said:
Thats a great idea! I think Hilltop in Madison already does that.
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Marty's Morristown and Randolph locations (not sure about Hackettstown) seem to have coffee setups as well. I've never seen anyone use them or walk around with a hot cup though. Not sure how it works.

This is so depressing about High Gear. I bought my Salsa there just last year, and they were great to deal with.
 
rick81721 said:
Eh I doubt the return would justify the cost. Plus, unless it is totally self serve, it takes someone's time away from customers/maintenance/repairs.
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I've stopped at the HB madison store to refill my water bottle and to use their bathroom. And the guy (don't know his name) who was working on a bike at the time, was very helpful asking me if I wanted an espresso/coffee. I think it's small stuff like that which keeps the local bikers coming back.
 
Damn, always sad to hear when I thought high gear was one of the “big” guys.

Some shops are adapting to the current market and others are not. I’m not going to act like I buy 100% LBS but I do what I can.
 
rick81721 said:
One thing I noticed about the LBSs in FL is they have a significant rental business. I realize there are alot more tourists and part-timers but wonder if there is a local market here. Maybe a way to position longer-term demos?
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Limited market, having rented in maybe 10 cities, there is typically only one or two shops in a large area with rentals.

That being said, avg rate was $50-70 a day so the potential return is decent.
 
stb222 said:
Damn, always sad to hear when I thought high gear was one of the “big” guys.

Some shops are adapting to the current market and others are not. I’m not going to act like I buy 100% LBS but I do what I can.
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HGC was unfortunately too big to move with the market. They'd take almost 100% of their yearly stock in pre-season and be stuck with whatever they bought for the year. The owner and buyers are not riders and would buy bikes no one wanted. With as fickel as cyclists are and trends changing daily, you need to stay small with low inventory in order to keep up. I saw the place going under when I left 5+ years ago.
 
rick81721 said:
One thing I noticed about the LBSs in FL is they have a significant rental business. I realize there are alot more tourists and part-timers but wonder if there is a local market here. Maybe a way to position longer-term demos?
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We’ve built our demo fleet substantially over the last year. It does help. This summer we have bikes from Santa Cruz, Cannondale, Mondraker and Felt for demo. Plus a new brand that we are taking on in the next few weeks.

To speak to the coffe bar question, the moment you sell coffee, you fall under the microscope of the dept of health. This means that they can shutter the whole store (not just the coffe bar) under their oversight. ..plus I don’t drink coffee.


..as a side note, one of my reps just told be that between stores closing and trek taking over underperforming dealers, he’s lost 24 shop in the last year to whom he can sell to. This consolidation is happening in all sectors of retail. The staggering # of resumes I’ve seen in the last month tells the unfortunate tale.

I believe this consolidation will spread quickly across many markets, causing a jump in unemployment #’s.
 
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jdog said:
We’ve built our demo fleet substantially over the last year. It does help. This summer we have bikes from Santa Cruz, Cannondale, Mondraker and Felt for demo. Plus a new brand that we are taking on in the next few weeks.
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Can you disclose the new brand? Will be doing some demos later in the spring.
 
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