Portland’s cycling community is set to lose another brick-and-mortar bike shop as Western Bikeworks has announced the closure of its physical retail location. The 10,000 square foot store, situated at the prominent corner of Northwest 17th and Lovejoy, will cease operations before the end of the year. This decision marks a significant shift for Western Bikeworks, signaling a strategic pivot towards prioritizing its thriving online business.
According to Jay Torborg, CEO of Velotech Inc., the parent company of Western Bikeworks, the closure is driven by the upcoming lease renewal and a strategic decision to concentrate on their already successful e-commerce platform. In an email statement, Torborg explained, “The expected future costs of operating the store have cast doubt on our ability to operate this store profitably.” This suggests that the financial projections for the retail space did not align with the company’s long-term goals, especially when weighed against the potential of their online ventures.
Western Bikeworks storefront in Portland's Pearl District
Western Bikeworks initially launched its retail store in 2011, building upon the robust foundation of its online sales, which had been steadily expanding since 2003. The physical store was conceived as an extension of their online presence, offering a wide array of new bikes, cycling gear, and also incorporating a cafe and a substantial service department. However, despite its prime location in Portland’s Pearl District and considerable size, the retail outlet now represents less than 10% of Velotech’s total revenue. A staggering 90% of the company’s business is conducted online through its trio of websites: WesternBikeworks.com, BikeTiresDirect.com, and Trisports.com. This stark contrast in revenue generation underscores the company’s decision to refocus its resources.
Further elaborating on the strategic rationale, Torborg mentioned the necessity for increased investment in Velotech’s new distribution center in Charlotte, North Carolina. This facility was established to enhance service to customers in the eastern United States. “It made more sense for us to use our available capital to fund our Charlotte expansion,” Torborg stated, indicating that resources are being redirected to bolster their online infrastructure and expand market reach beyond the local Portland area.
While the physical store is closing, Western Bikeworks is not entirely abandoning its brick-and-mortar presence. Torborg indicated that the smaller retail space at Velotech’s warehouse, located near Northeast Columbia Boulevard and 82nd Avenue, will be expanded following the closure of the Lovejoy location. This suggests a continued, albeit scaled-down, commitment to physical retail, possibly geared towards local pickups or a more specialized service offering.
Addressing concerns about the health of the Portland cycling market, Torborg remains optimistic. He acknowledged the presence of numerous “great stores” still operating successfully in the metropolitan area. His statement, “We felt that our strengths are more in e-commerce than brick-and-mortar retail,” reiterates the company’s belief in their online business model as the primary driver for future growth.
Despite the retail closure, Western Bikeworks has affirmed its commitment to supporting local cycling clubs and teams, ensuring their continued engagement with the Portland cycling community. Regarding the approximately twelve employees at the soon-to-close store, some will be offered positions at the company’s warehouse, aiming to retain valuable staff within the organization. The Western Bikeworks retail store will remain open through the holiday season before its final closure in early 2020, with significant sales expected on showroom stock in the interim.
The closure of Western Bikeworks’ retail store is part of a broader trend in Portland’s bike retail landscape. Recent years have seen the closure of other notable bike shops, including Crank Bike Shop, A Better Cycle, Performance Bicycle, and Velo Cult, reflecting evolving market dynamics and consumer preferences within the cycling industry. This shift emphasizes the increasing importance of e-commerce and online retail strategies for businesses like Western Bikeworks in today’s market.
