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Schwinn Takes a Spin at Chainstores
The gold standard of traditional American bicycles started appearing in Wal-Mart, Target and Toys R Us stores this month, stunning the U.S. cycling industry and promising to transform the way bicycles are sold. Schwinn, the premier brand of Pacific Cycle, has long been a staple of specialty bike shops, which sell its family, off-road and sleek racing bikes for up to $2,800 apiece. The line has always been withheld from mass retailers. But Schwinn's new parent company is determined to get the brand in front of more shoppers -- to dodge what one researcher calls the ``age-induced recession'' that threatens the entire bicycle trade. The concern has everything to do with aging baby boomers. Once among the most avid of riders, boomers abandoned their bikes in alarming numbers in the past decade. Bicycle riding, once the third-most popular sport in the country, dropped to seventh last year. And suddenly there's a danger of an oversupply of bicycles because of the dwindling demand. ``We need to get as many people as we can interested in cycling again,'' said Richard Wittenberg, Pacific's vice president of marketing and business development. ``We need to go where America shops.'' The three chains are the nation's largest bicycle retailers. The decision is bold but controversial. Never before has a top-tier bicycle brand been sold in both the specialty shops and big-box chains. Independent dealers are grumbling about possibly losing market share to their new competitors. ``It's a fundamental change in the way bicycles have been marketed and distributed since the end of World War II,'' said Jay Townley, an industry consultant in Lyndon Station, Wis. ``It's a paradigm shift.'' Pacific is no stranger to big-box retailers. When the Madison, Wis.-based company purchased Brunswick Bicycles in December 2000, it acquired the Mongoose and Roadmaster brands. Both were lower-end makes that Pacific immediately marketed to Wal-Mart. Pacific told dealers early on that it would do the same with the Schwinn brand soon after it acquired it this past September. Though Schwinn has a distinguished history that dates back to 1895, it also suffered two bankruptcy filings under previous owners. This month, Wal-Mart, Target and Toys R Us began stocking some of the nine styles of Schwinn bikes for men, women and children, priced from $79 to $249. But the specialty shops carry a wider variety, including the highest quality and most expensive styles. Pacific appears to be responding to the changes. But it's going to be a tough -- and risky -- transition, because the independent retailers are uneasy about the arrangement. Consider Dan Park's predicament. When he got wind earlier this year that Schwinn might go to Wal-Mart, he dropped the brand from his Adventure Bicycle store in Bel Air, Md. Pacific's decision, he said, is going to create a lot of confusion, particularly among uneducated consumers unable to distinguish between the different styles. Not if Jason Miller can help it. The 28-year-old has been biking seriously for six years and plans to compete in a 100-mile bike race in Harrisonburg, Va., on Labor Day weekend. He is willing to spend his money for a premier model. Would he ever consider buying a bike -- a Schwinn or any other -- at Wal-Mart or Target? ``No way,'' said Miller. ``The quality of bike there would never hold up to the kind of biking I do,'' the Falls Church, Va., resident said. The concern has everything to do with aging baby boomers. Once among the most avid of riders, boomers abandoned their bikes in alarming numbers in the past decade. Bicycle riding, once the third-most popular sport in the country, dropped to seventh last year. And suddenly there's a danger of an oversupply of bicycles because of the dwindling demand.FAIR USE NOTICE: This page contains copyrighted material the use of which has not been specifically authorized by the copyright owner. Global Action on Aging distributes this material without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. We believe this constitutes a fair use of any such copyrighted material as provided for in 17 U.S.C § 107. If you wish to use copyrighted material from this site for purposes of your own that go beyond fair use, you must obtain permission from the copyright owner.
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