–
The Colruyt supermarket chain had to have its brand new daughter Fiets! donated 10 million euros in the past year. The sales boom after the lockdown is now giving Belgium’s largest bicycle retail chain a boost.
–
The bicycle has been on the rise for some time, but Belgium’s largest bicycle seller was again unable to take advantage of it last year. The bicycle retail chain! recorded a net loss of 6.8 million euros in the abbreviated financial year 2019 (9 months). This is evident from the annual accounts of the core company Joma Sport, named after the Ghent store that formed the basis of the Fiets! Empire.
–
The chain was founded in 2010 by the ambitious entrepreneur Hendrik Winkelmans and his wife. But after explosive growth, the duo choked on a failed mega takeover in the Netherlands. The CEOs took turns in quick succession. In the summer of 2018 Fiets! protection against its creditors.
–
Ambassador
Colruyt was immediately allowed to clear up debris. Bicycle! struggled at the end of the previous financial year with a negative equity of 8 million euros and accumulated a loss of 20 million euros in recent years. Colruyt therefore provided its bicycle daughter with a capital injection of 5.1 million euros in November. In March of this year, the listed retailer Fiets! Lost 4.3 million euros in debt, according to the annual accounts. ‘The additional funds serve to support the growth of Fiets! and support its expansion ‘, Colruyt says.
–
Colruyt also had to put things in order operationally. The bicycle chain worked with three different planning systems, as a result of which there was ‘insufficient internal control in place’ in 2018, according to the annual report. IT problems have been causing repairs and orders to go wrong for some time. ‘Bicycle! did not have a very good reputation, especially when it comes to service, ”acknowledged cycling champion and brand new Fiets! ambassador Tom Boonen in Het Laatste Nieuws last year.
–
Since the takeover by Colruyt, Fiets! better for it. The new owner introduced one planning system. The number of stores increased from 11 to 14. This summer Fiets! his own private label brand Hiron. Under that brand name, the company sells three electric models from 2,000 to 3,000 euros. “Hiron is a Belgian product that we can deliver continuously,” says Wim Teerlynck responsible for Bicycle!
–
Coronaboom
The biggest tailwind is getting the chain from the rush on bikes since the lockdown ended. Bicycle! had built up a strategic stock to anticipate the expected boom. ‘We had expected heavy sales, but it was hallucinatory,’ says Wim Teerlynck. “Sales were three, four, even five times higher than our budget, which was already ambitious.”
–
We expected a heavy sale, but it was mind-blowing.
Wim Teerlynck
Responsible Bicycle!
–
–
–
Because the fitness shops initially remained closed, Fiets! a lot of cheaper mountain bikes and racing bikes in May. The demand for electric city bikes in particular remains enormous, according to Teerlynck. ‘They account for more than half of the sales and three-quarters of the turnover. And then I calculate the (heavier, ed.) speed pedelecs are not included. ‘
–
In the meantime, the hunt for new bicycles has eased somewhat, although Fiets! still 30 to 50 percent more than expected. The chain hopes to find the right gear ten years after its establishment.
–
Bicycle!
- Includes 14 bicycle shops in Flanders
- Founded in 2010 by Hendrik Winkelmans and his wife Catherine Van Dijk
- Owned by the Colruyt supermarket chain since last year
- Turnover (January – September 2019): 10.9 million euros
- Operating loss: 2.9 million euros
- Net loss: 6.8 million euros
- Employees: up to 110
–
–
–
:quality(80)/cdn-kiosk-api.telegraaf.nl/f0804e58-dce2-11ea-a80c-0255c322e81b.jpg?resize=150%2C150&ssl=1)
