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Diamondback restructuring North American operations
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So what does this mean for DB? They just came out with two radically innovative bikes- where do they go from here? Is this something to worry about? Discuss.

http://www.bicycleretailer.com/north-america/2017/11/16/accell-adapts-north-american-operations-due-lower-sales-through-traditional#.Wg8T_hNSz-Y
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Re: Diamondback restructuring North American operations [jjstains] [ In reply to ]
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A better question is how much longer Dick's will be around. I can't see them being spared from the retail apocalypse. DB is probably going to eat it which is shame since they rely on the sales from lower priced models to fund their operation. Pity.
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Re: Diamondback restructuring North American operations [johnnybefit] [ In reply to ]
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Dicks has an online sales plan that includes their current distribution networks. I don't know if it's a good plan, but it will likely keep them in the game for longer than some of their competitors.
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Re: Diamondback restructuring North American operations [jjstains] [ In reply to ]
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While I hate to see any good bike retailer have troubles, discounted inventory could be music to my ears (if they are decent 105 or better builds). Sounds like it's department store only models.

I think Diamondback can carve out a nice niche for themselves in the same way Fuji has. But they need to be smart about it. Let Trek and Specialized own the top end (and Canyon if/when they get here). They could own the tri bike opening price point segment and continue to establish themselves within triathlon (but probably not with their current radical offerings). Cannondale Slice and Kestrel are the only brands/models I see in that space and there could be room for one more. And then they need to great creative on distribution.
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Re: Diamondback restructuring North American operations [johnnybefit] [ In reply to ]
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Dick's moved into several of the Sports Authority stores in the San Francisco bay area after they went bankrupt.
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Re: Diamondback restructuring North American operations [johnnybefit] [ In reply to ]
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johnnybefit wrote:
A better question is how much longer Dick's will be around. I can't see them being spared from the retail apocalypse. DB is probably going to eat it which is shame since they rely on the sales from lower priced models to fund their operation. Pity.

Here's the thing: who does Dick's have left as B&M competition? They're in the driver's seat right now in terms of lease negotiations (one of their largest expenses) and while they're a bit cash light they're not really leveraged. They could assuage any liquidity concerns by cutting their dividend for a quarter or two. I suppose they have to turn around their current sale's trajectory, sure, but are we really going to assume that B&M sales of sporting goods is going to zero?
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Re: Diamondback restructuring North American operations [GreenPlease] [ In reply to ]
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GreenPlease wrote:
johnnybefit wrote:
A better question is how much longer Dick's will be around. I can't see them being spared from the retail apocalypse. DB is probably going to eat it which is shame since they rely on the sales from lower priced models to fund their operation. Pity.


Here's the thing: who does Dick's have left as B&M competition? They're in the driver's seat right now in terms of lease negotiations (one of their largest expenses) and while they're a bit cash light they're not really leveraged. They could assuage any liquidity concerns by cutting their dividend for a quarter or two. I suppose they have to turn around their current sale's trajectory, sure, but are we really going to assume that B&M sales of sporting goods is going to zero?

I don't know what B&M is but sporting good will not go to zero, just go to Amazon. No reason to buy anything from Dick's online when you have Amazon.
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Re: Diamondback restructuring North American operations [johnnybefit] [ In reply to ]
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B&M = Bricks and Mortar

Personally, I feel like a lot of recreation purchases are spontaneous and "next day" isn't quick enough. That's not to say that Amazon won't take a bit out of the category (it already has and will) I just don't see it going to zero.
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Re: Diamondback restructuring North American operations [GreenPlease] [ In reply to ]
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GreenPlease wrote:
B&M = Bricks and Mortar

Personally, I feel like a lot of recreation purchases are spontaneous and "next day" isn't quick enough. That's not to say that Amazon won't take a bit out of the category (it already has and will) I just don't see it going to zero.

It may when Amazon achieves same day delivery for most people (other than remote, low pop areas). That day is likely sooner than later.
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Re: Diamondback restructuring North American operations [Dan Funk] [ In reply to ]
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Here in Raleigh at a college football game, Clemson University was literally calling Amazon to drone in a box of towels DURING the game a few weeks ago. It became a big issue because an student manager was using a laptop on the sidelines trying to order a box of towels and get it droned in.....the world we live in now (and no it didn't actually work or get delivered).

Brooks Doughtie, M.S.
Exercise Physiology
-USAT Level II
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Re: Diamondback restructuring North American operations [B_Doughtie] [ In reply to ]
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B_Doughtie wrote:
Here in Raleigh at a college football game, Clemson University was literally calling Amazon to drone in a box of towels DURING the game a few weeks ago. It became a big issue because an student manager was using a laptop on the sidelines trying to order a box of towels and get it droned in.....the world we live in now (and no it didn't actually work or get delivered).

A world where a university student took a few too many bong hits prior to the game?
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Re: Diamondback restructuring North American operations [GreenPlease] [ In reply to ]
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GreenPlease wrote:
B&M = Bricks and Mortar

Personally, I feel like a lot of recreation purchases are spontaneous and "next day" isn't quick enough. That's not to say that Amazon won't take a bit out of the category (it already has and will) I just don't see it going to zero.

That's what every brick and mortar retail denier has said since Al Gore invented the internet. Dick's and others of its kind are going out of business so fast -- and by 'others of its kind' I mean any b&m retailer where you don't either have to see or feel or try on the product to have any sort of satisfaction rate that makes sense (relative to blind ordering online) or where the size, shape, dimension or the product make traditional shipping either impossible or highly unaffordable. I'm not blind ordering a leather couch, which I have been shopping for lately with no success -- I hate everything I try at these physical stores. I'm not blind ordering a gun safe or horse feed -- I have to go to Tractor Supply for that kind of stuff. Try ordering a 700 lb gun safe on Amazon Prime.

Of course, I would be denying this inevitable obsolescence too if my entire livelihood were tied into the health of commercial leasing, so I sympathize.

It's a bummer for Diamondback really. This is a company that broadly serves the lower end of the market, but yet they aren't in traditional bike shops. If you could have any sort of confidence the Diamondback could execute such a strategy, a good option might be Diamondback concept stores, similar to Giant-focused shops, that are aimed in large part at commuters, kids, and others at the lower end of the market. Plus service. This could also help supplement their direct to consumer fulfillment strategy, where you buy a Diamondback online but actually have someone local who can be accountable for the assembly, cleanliness of the headset bearings, etc.
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