Opinion: Migros, why are you doing this? | Ride MTB

Opinion: Migros, why are you doing this?

I felt like I was in the lion's den when I entered a branch of the Migros subsidiary Bike World. And this cave is really nicely done, makes you want to ride a bike and has a few surprises in store. It's not clear to me how a 40 percent discount on a new bike is possible or necessary during peak season.

It is one of the most emotionally debated topics in the bike industry in recent years. And certainly one of the most dramatic market changes for many people who earn their living with bikes in Switzerland. Migros is making people mobile - with high-quality bikes in large-scale stores. Around ten of these Bike Word stores are set to open in Switzerland over the next few years, with three already in operation.

Hundreds of bikes

So it was time to visit a branch a few weeks after the launch in March. While I still look in suspiciously from the outside, inside the store I feel at ease. Bikes are just so cool, my brain tells me, and there are lots and lots of bikes here. Hundreds of them! It takes me a while to get used to the new store format - after all, it's not often you see an exhibition of hundreds of attractive new bikes in Switzerland. The salesroom and the presentation of the bikes and accessories are also beautifully designed - the abundance of wood and the lettering create a mix of city and ski lodge ambience. The test track in the middle of the store has a distinctly urban feel. On Saturday afternoons, it is very busy here. Pedestrians and cyclists cross paths in a way that is not always entirely safe. But hey, a test track in the store, that's really cool, and the customers are also riding around on it.

After the first impression, which is like overkill, I start to find my way around the store. The mountain bike fullies interest me the most. However, on this busy Saturday afternoon, I seem to be one of the few people to show any interest during my hour-long visit to the store. Most of the customers I see are interested in electric city bikes and are sometimes a little desperate for advice. The store staff are committed, friendly and friendly, but can't keep up with the number of visitors to provide all customers with adequate advice and service. Inexpensive hardtails also attract a lot of interest. I see several customers pedaling around the in-house test track on bikes in the price range of around 600 to 1,000 francs. The fact that there are only three models in the store from a Swiss à la carte bike manufacturer from Kreuzlingen causes me great astonishment. I wonder why this traditional manufacturer is presumably annoying its long-standing specialist retail customers with its Migros commitment, and yet there are only three bikes in Bike World, which are completely lost there.

The price

Then I talk to a customer who picks up the hardtails he bought from a specialist dealer a few years ago from the Bike World workshop. The workshop is open to the public and you can watch the mechanics at work, which ensures transparency. The invoice attached to one of the two repaired hardtails also ensures transparency: the work carried out and the parts fitted are noted here in handwriting. I'm amazed that you still get handwritten invoices at Migros. I am also amazed - or rather annoyed - that I know that Migros works with workshop hourly rates that are far below the level with which a specialist dealer can earn a reasonable living. But the price is hot - and the competition for customers via low prices seems to be working: The customer with the repaired hardtails first obtained a quote from a specialist retailer, which was around 20 percent higher than the Migros price. There is currently a service discount at Bike World, so he is saving real money here. He had also heard that there are trained specialists working in the workshop.

After more than an hour at Bike World, I'm back at the start, at the exit. There are mountain bikes here with a particularly big discount. The bikes are lined up in the frame sizes small, medium and large, which literally screams: "Take me home with you, I suit you!" A bright red Giant Anthem with an incredible 40 percent discount catches the eye in the discount display. "Special" is written large in red on the price tag, and the calculative battle announcement immediately catches the eye: "40%", "1999.-" "instead of 3599. Whether it is a previous year's model or why the price is so low is not communicated. I would like to ask, but all the staff have their hands full with sales and advice.

As I leave the Bike World store, I have this feeling: this place really makes you want to ride a bike. I saw customers who hadn't been on a bike for a while. So it could be that Bike World is opening up the market.

David versus Goliath

On the way home, I suddenly realize again: I like small, authentic, owner-managed stores. I prefer individualized products - which is probably one of the reasons why I ride a bike store with a focus on à la carte bikes. A large selection is good, but I usually already have some information and experience before buying sports equipment, so it shouldn't be anything off the shelf. I would probably never have become a Bike World customer even without my own bike store, because they (almost) only sell off-the-peg bikes. And I don't want to buy my bike from a company that also sells food, medical services, loans, gasoline, computers and gym subscriptions in addition to bikes. It simply has nothing to do with the flashy experience I had when I first entered the trendy Basel surf store at the age of twelve.

After my visit to Bike World, I also have the feeling that Migros is shamelessly playing the game of David versus Goliath. For specialist retailers, such a blatant discount policy by a major market player can backfire. In view of this pricing policy, the statements by Migros managers that the Swiss bicycle market offers enough volume are simply window dressing. Specialist retailers who buy bicycles in smaller quantities and do not benefit from large volume discounts are definitely already making a loss with a 40% discount. My next step will be to ask Giant and Migros how this steeply discounted price of the Giant Anthem came about. I'm very curious to see if and how Giant and Migros respond.


Note: This content has been automatically translated from German. Please report any incorrect translations.