Big names in the Migros Bike World bike store: what's in it for the customer?

Until now, Migros and bikes were a liaison that focused on affordable bikes. In 2017, the orange giant has three large stores with top brands - and this market change is causing emotions to run high in the Swiss bike industry. Trek Managing Director Harald Schmiedel explains the advantages of the Migros sales channel in an interview.

Around 450 bikes, store sizes of over 1000 square meters, professional advice and a workshop: Migros is entering the Swiss bike market with performance data like this when it comes to selling high-quality bikes. The first three stores will open in Volketswil, Muri near Bern and Winterthur in 2017, with more locations to follow in the coming years. Well-known manufacturers are on board with the new Bike World store format, including Trek. Trek Managing Director Harald Schmiedel explains why Trek has decided to be part of Bike World

Radio Energy and Radio SRF have discussed Migros' expansion into the bike trade. Peter Sommer, President of the Swiss bicycle trade, pointed out that these Migros stores are taking away sales and unit numbers from smaller businesses. What is your view on this? Trek has been working intensively on the Bike World concept in advance. With its service-oriented business model, which focuses on consulting expertise and quality, we see Bike World as a specialist retailer that can also appeal to customer groups that have not previously shopped at specialist retailers and therefore has a positive influence on the bike market. We are also convinced that retailers who think ahead, are active in the market and move with the times will not lose out.

Sommer goes on to say: "The smaller businesses can no longer reorder, as Migros has already bought everything together". What's your view on this?
There won't be any reorder bottlenecks because of Bike World. Trek has a very large European warehouse that can also offer sufficient quantities for new customers the size of Bike World.

Sommer also fears that specialist retailers could lose a massive amount of market share as a result of Migros' market entry, and he sees a bleak future for many businesses. Do you share this assessment?
As already mentioned, active retailers will have no problems. Retailers who focus on quality, advice, service, customer experience, emotionality and community will continue to thrive. We support our dealers in using and implementing these success factors for their business and offer assistance in the form of business consulting, so-called CI events, retail services, employee training, Trek University and a modern merchandise management system called Ascend. This commitment to retailers is unique in the bicycle industry.

HHSG professor Christoph Lechner also has his say in the SRF report and says that specialist retailers have no chance against Migros in terms of purchasing policy; Migros has much greater leverage to achieve reductions in purchasing. What do you think about this issue? From Trek's perspective, we cannot agree with this expert opinion! Trek offers all dealers a fair conditions model.
Speaking of prices: What are the sales prices at the Migros Shop Bike World? Are the prices the same as for specialist retailers - or do different rules apply for this big player? As mentioned above, we see Bike World as a high-quality sales platform, as a specialist retailer where quality, service, brand experience and advice are paramount. Price reductions are not the primary strategy here.
On the Bike World website, there was an offer for a Trek hardtail with a 40 percent discount. Do you think such discounts make sense and what are your bike company's plans in this regard?
This offer is a limited-time offer for a 2016 discontinued model. Such an opening offer is well within the normal range. Discontinued models are offered to all our dealers at special conditions.