London, Action Bikes O shop - GONE!!!!!

Mainly cos the O store has opened in Covent Garden.

This shop has served me very well (and some of you guys in the US - Carbon/blue Ichiros (various pairs), free Armstrong posters etc etc) always helpful, enthusiastic and most importantly knew what they were talking about, and always had a hotline to O HQ (uk)...

Not anything I can say about Covent garden....

It'll be sorely missed guys, thanks for all your help over the last 5 years......







If anyones in London pop into the bike shop they've still got some of the old stock, dont know if anythings being knocked out cheap though....

Sounds like it would be worth a look. Yeah it's sad when the good one's lose out to corperate but now they're free to pick up the lucrative Smith & Briko lines ;^)

Sounds typical of Oakley to cut into local dealers business.
Just another example of how Oakley doesnt care about its dealers.

Here you have a great store doing great business for Oakley and what do they do, pop an O store right next to them.

Oakleys moto should be Shi**in on the little guy.

Just an honest opinion.
They do this to most of their dealers from my experience.
We all love the product but when it comes to dollars for Oakley, there is no support for dealers. Everything is for their own stores.

Just like the time tank and every new release, why do you think O stores get product even before the largest OPD independent retailers???
Because Oakley makes the products, therefore the profit margins are larger. They try and get customers to come into their stores and buy as soon as the products come out.

Then 2 weeks to a month the mom and pop stores who really need the product to sell so they can make a living end up getting the product.

Its just not correct..

I don't think it's that easy. Most dealers want to carry only selected styles, because they don't have the people to sell it. And dealers demand more and more from the industry. A company like Oakley must show its whole portfolio, there are so many products normal stores don't carry at all. Therefore, you need your own stores to become visible to the larger audience. It's hard when really good stores close down like in your case, but I think it's good to have company-owned stores.

I agree its good to have company owned stores but when they shut down stores who have supported their product to the fullest for many years, its just isnt correct.

This particular store even had a whole Oakley section...

Maybe there are other reasons, financial problems or anything like that? I don't think it depends on Oakley only...?

O-believer,
Oakley makes their money selling to retail resalers. That is why you always see "MSRP"...Oakley has their money for the manufacturing portion by this time. The more money you keep in house by selling retail products, the more margin/profit there is to go in Oakley's pocket.
-$100 pair of glasses cost ($10-$15) to make,
-Oakley sell to retailer @ $75, so $50-$65 margin.
-Retailer sales to customer @ $100,so $25-$30 margin.

Now oakley sales to O-store and it gets sold for $100
Margin now jumps to $85-$90 margin...

If it is your company, what store do you want to sell your products?

I know all these facts, I've worked in retail for 7 years, and I've seen the development from both sides, industry and retail side.
Of course you make more money selling the product in your own store with a higher margin. But you also have higher costs, you have sales staff to pay and the rent for a top notch location...I wonder what the Covent Garden O Store costs in one month. If you look at the top retail locations in big cities, there are more and more company-owned stores coming up, no matter which company they are from. Why? Of course to get twice the margin. But also because normal stores with the "normal" margin can't afford the extremely high rents for that locations anymore. My hometown in Germany has one really big shopping street. 5 years ago, there were several "normal"stores. Now, there's only H&M, Puma, Adidas, Sixty Group and a few "giants" who carry many brands. All the other ones simply could not afford the rents anymore.

I'm an OPD ( said this many times before ) and i think that an O-STORE can asset to the sales of the local dealer , because it creates more brand awareness , thus more sales revenue. if i was working at HQ and had to decide how oakley would sell its products , i would go about it like BENETTON , with big stores owned by oakley on "critical"places ( the best shopping malls etc.) and franchise "little stores" run by private people , who carry the mainstream articles. in that way , you always have adequate selection of oakley product , whereever you may be.

i would set up such a franchise store in a heartbeat , if oakley would come up with such offer.

Obviously it creates brand awareness.
But I am sure you are loosing tons of money if there is an O store next to you.
How many times have you tried to order products and the answer you get is that they are on back order or sold out, yet the O store have tons of item your customer wants.

Now what?? Your customer going to the corporate store to buy it.

I bet you have prob gotten a few calls about the time tank?
How much do you want to bet that the O store next to you will get them before you will.

Unless you have VERY loyal customers or offer a discount, your customer will go there to buy it.

My first post, on such a sad announcement... I got my stealth Blade there as soon as it came out, as well as a few other things. It definitely helped kick-start my interest (addiction) in the O. All the staff were extremely helpful - one guy called HQ to enquire if they could do RX lenses in my awful prescription. They couldn't, but at least he made the effort.

Unlike the O Store in Covent Garden - I had a bizzare conversation with a guy there a couple of months ago about nose bombs.

That's obviously the danger of corporate stores, but sometimes, people prefer the personal atmosphere of a smaller store. And not every new product creates a hype about it so everybody wants to have it at once when it comes out. We have a Ralph Lauren store in my hometown, but people also bought at other stores - they felt the shop staff was too arrogant.

I hear ya, but I dont see too many people rushing to the ralph lauren store to get the latest sweater.

...of course, a sweater can't be compared to a Time Tank or Thump or any other groundbreaking stuff. But I think sometimes we overestimate the number of people who are addicted to Oakley as we are and rush into the stores at once when new stuff comes out. Maybe it's different in other countries?

Omad, sounds like your pissed at oakley, surely an oakley fan stie isnt the best place to be bashing them?

@Fred> And since you are a real Oakley fan with your heart and soul, it would perform exceptionally, I guess!
I worked in a smaller sporting goods store myself, and I had a department stores with 4 double wide towers round the corner. We did not sell more than they did, but the great stuff, at higher prices, all the polarized and x metal stuff. A company store alone can't beat a real Oakley addict.

I am a fan of Oakley products but some of their business tactics are very questionable.

I thinks it's become almost common knowledge that Oakleys are always the same price everywhere so that, at least, levels the playing field. After that it's up to the dealer to stay on top of it's selection & they should be OK. In fact, most of these stores can offer something that O-Stores can't...Products other than Oakley for combined sales.

I hear ya Todd. I found the range in O Store London to be pretty limited compared to my OPD (who carry pretty much all the colours/styles of almost every Oakley product currently available), but the O Store does typify Oakley, and creates brand awareness in a big capital city full of tourists.

In my opinion, if an OPD is doing things right, such as carrying things you can't necessarily get at a nearby O store, offering better customer service, or selling other cool brands as well as Oakley, then they should be okay.

I do hear that OPDs are getting a bit annoyed at having to place their entire Oakley orders (in the UK at least) by quarter, rather than the smaller period it was prior to last year. Can leave them with a lot of stock to shift at below retail prices once a season is ending.

we prebook at one year before actual delivery , for example we ordered FALL 2006-2007 in januari this year , and AUGUST 2006 we will order SPRING/SUMMER 2007

no big deal , we do the same thing @ other brands , such as Billabong / reef / oxbow