Goodbye to this famous chain in the United States: they're permanently closing their stores

The reality of retail in the United States has become more complicated in recent years. It's increasingly difficult for brick-and-mortar stores to compete with brands that sell directly to consumers online. This change in shopping habits has put long-standing chains in check.

One of the most recent cases is Bicycle Sports, a well-known bicycle shop in Beaumont (Texas), which will close its doors on October 18. Its closure is due to the rise of e-commerce and the difficulty of competing with manufacturers that sell directly, reducing profit margins to unsustainable levels. The company, which had been operating since 1984, leaves behind more than four decades of history in the sports sector in the United States.

A business that hasn't been able to survive in the United States

During the pandemic, the business experienced an unexpected rebound. Texas didn't apply the same restrictions as other states, which allowed Bicycle Sports to enjoy up to 20 months of good results. However, that boom didn't keep going and the drop in sales became evident starting in 2019.

The owner himself, Eric Bender, told the local outlet 12 News Now, that the situation became unsustainable. All the brands he offered in his store could be purchased directly online for lower prices. Faced with that scenario, the profit margin shrank so much that it became impossible to keep the business profitable.

The market overall has also changed drastically. In 2022, more than 60% of bicycle sales in the United States were made online, 35% more than the previous year. The growth of electric bicycles, responsible for a significant increase in the sector's revenue, further reinforced direct sales by manufacturers.

A problem that affects the entire sector

The situation of Bicycle Sports isn't an isolated case. Other sports chains in the United States have suffered closures in recent years for the same reason: the difficulty of competing against brands that offer their products directly. Among the well-known examples are Modell's Sporting Goods, which closed in 2020 after more than a century of history, and Sports Palace Inc., which dissolved in 2023.

The problem is aggravated because brick-and-mortar stores take on more expenses than a digital seller. Traditional businesses must pay rent, staff, and services, while online platforms can sell at much lower prices. This unfair competition causes many stores to end up reducing margins to unsustainable levels.

Eric Bender, who devoted his entire life to bicycles, has acknowledged that now it's time for him to retire. With the announcement of the closure, Bicycle Sports stopped offering repairs and marked all its sales as final. On its website, an ironic message sums up the situation: "We're waiting for the vultures".