February 29—March 13, 2008
Northern Colorado is riding into a cyclical economy, but economists might not notice.
Archie Solsky, owner of Lee's Cyclery in Fort Collins, and Trent Schilousky and Robin Torres, co-owners of Peloton Cycles in Loveland, each have announced plans to expand into new territories using the latest trend in bicycle retail: concept stores.
Across the United States and into Europe, dealers are shifting gears to form partnerships with bicycle manufacturers to provide an exclusive presence in the retail market. This arrangement allows dealers to get merchandise before non-concept-store dealers, receive more support and place much of the marketing responsibility on the manufacturers, which frees up time for more selling.
Prominent names in the high-end bike arena with concept stores include Wisconsin-based Trek Bicycle Corp., California-based Specialized Bicycle and Taiwan-based Giant Bicycles. Prior to the expansion announcements, Peloton and Lee's both carried Trek and Specialized side by side.
The store owners remain tightlipped over who was first to approach Trek or Specialized about opening a concept store, but the decision essentially forced the other to respond in kind. In the end Peloton Cycles went with the Specialized concept store and Solsky the Trek concept store.
While Specialized and Trek both let dealers carry additional brands in the concept stores, Peloton has ended its contract with Trek and Solsky has dropped Specialized. As a result, for almost a year, Fort Collins has been without a Specialized outlet and Loveland without a Trek outlet.
New stores need new buildings
Cycling enthusiasts tired of crossing city boundaries just to shop between the two brands will be relieved to know that each concept store will call the competition's unspoken territory home.
Solsky selected the 2534 development, at the intersection of Interstate 25 and U.S. Highway 34, as the place to build his Trek Store based on the area's corporate feel and regional draw.
"I felt that the retail environment at 2534 was more conducive to a Trek concept store. The store would feel and act different," Solsky said.
The 12,000-square-foot building just nine miles east of Peloton's Loveland location is being built to LEED silver-level standards, he added.
The 7,500-square-foot Trek Store will anchor the building with the remainder going to retail space on both sides. Solsky said he has filled the larger space, but declined to disclose the tenant.
Nor was he able to comment on what other brands would be available at the concept store, but his two Fort Collins Lee's locations deal in Gary Fisher, LeMond, Bontrager, Klein and Cervelo bikes in addition to Trek.
Peloton Cycles is working on a 14,000-square-foot building on the southwest corner of Harmony and Ziegler roads in Fort Collins and has received a preliminary LEED rating of gold.
"The location became available while we were looking," said Schilousky. "I can't imagine a more attractive location. Around us is the demographic for products we specialize in."
That demographic includes employees at Hewlett-Packard on the opposite corner and Intel and the Harmony Corporate Center on the adjacent corners, just two miles from the Lee's south store.
Specialized will anchor the building with 11,000 square feet and 3,000 square feet of additional retail space is available for lease.
Schilousky's vision for the store is something like that of an interactive catalog.
"The concept store is a brand extension of Specialized," Schilousky said. "In theory, it will be a living catalog that you can see, touch, feel."
While Specialized products will be most prevalent, shoppers will also be able to find Litespeed, Colnago, Pivot and Titus bike brands at the store.
Positive attitude, growing market
Increased proximity to the competition might have other business owners concerned, but Schilousky and Solsky look at it positively.
"They're (Peloton) good operators and do a good job," Solsky said. "A lot of the events in the area Lee's has been supportive of - it'll be nice to get additional support."
"I think what we're trying to do is up the level of retail that is found in a bike shop," Schilousky said. "Years ago, interaction was casual. We want customers to have a better experience when investing that kind of money in a hobby - and for some it's more than a hobby."
Approximately 500 of those more-than-hobby-ists will ride into Fort Collins May 9-11 for the 2008 USA Cycling Collegiate Nationals hosted by the Colorado State University Rams Cycling Team.
According to T.G. Taylor, Rams Cycling president, the bid to host the championships submitted to USA Cycling included budget, maps, associations, routes and tour of course. Race areas will be north of Fort Collins with a time trial up Buckhorn Canyon and a circuit between Horsetooth Reservoir and Masonville.
"Northern Colorado has some of the best terrain in the country," said Charlie Weinbeck of the Fort Collins Cycling Festival LLC, which is helping put on the event.
Because CSU will still be in session during the races, the Fort Collins Marriott has offered to help out.
"The Fort Collins Marriott is giving incredible pricing for the participants - opening doors to students at an incredible discount rate," said Weinbeck.
Rams cycling will host the 2009 Collegiate Championships as well.
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