https://www.theguardian.com/business/2021/mar/09/mike-ashley-owned-evans-cycles-to-axe-300-staff
Pretty rubbish
That is properly shit.
Just read that, very sad news- that'll learn me, I'd thought that there was a chance Ashley might improve things for the chain, or at least stop the rot.
That man truly is a grimey toad. I used to like evans (pinnacle mostly..) for convenience but I won’t be spending anything there now. Poor staff.
Oof, that is not good. I wonder just how many more/other retailers will be slashing numbers and changing contracts in the months ahead. I fear many more to follow suit.
Why? Bike shops have been having a good time of it. I see his point a bit around city centre rent, but the landlords probably have no sympathy for a billionaire. Really reckon he’d do just as well if he wasn’t an arsehole. Got that cards in his hands as there’ll be lots of unemployed looking for work.
Decent staff will leave, zero hour contracts only suit a few. Standards will drop and it will gain a reputation for poor safety standards and poor build quality.
Their target market will change and they will fight it out with Halfords for the occasional cyclists on a budget and commutters.
Hopefully it means LBS will profit from this. Let them sell the bikes on the Internet and fancy stores and the LBS will pick up the services, spares and repairs. Hopefully some of the staff too.
Is this because greedy Ashley is trying to squeeze labour or because the business is still not doing any better? The former will cause a downward spiral for service and the latter would be a really astonishing failure considering how busy most bike shops and mechanics have been in the last year.
Had a look at the website the other day, literally nothing I want anymore. Loads of Muddyfox crap has arrived. Range of mountain bikes has gone from probably 25 pages a few years ago to 3 now. I understand there's a shortage right now but still.
You've got to wonder how accurate that article is though? Remember when SD first bought Evans and the news stories were stating half of the 60 stores were to close. Ended up that SD closed 6 stores. They've since opened 5 or 6 new stores elsewhere.
The arrival of the Muddy Fox stuff told me which way Evans was going. And the charge to get stuff delivered IN STORE!
Oh well, that's Evans off the list then.
It does seem an odd way to go, they are setup to be a strong player yet year after year seem to destroy themselves slowly from the top
You’ve got to wonder how accurate that article is though? Remember when SD first bought Evans and the news stories were stating half of the 60 stores were to close. Ended up that SD closed 6 stores. They’ve since opened 5 or 6 new stores elsewhere.
That was a negotiation or positioning tactic to get rent down.
I doubt staff there are in as strong a position as retail landlords.
Simply off the headline, it's seems crazy to slashing Evans of all things in the Ashley empire, given how cyling became so hip and trendy in the last year which lead to massive price hikes.
That’s a damn shame. The guys in my local Evans are all top blokes, and have seen quite a bit of my face in the last year or so, since all my LBSs decided to stop opening on a Sunday.
Evans used to be my LBS but when ashley took over it was closed up. The staff in there were always helpful and friendly. I feel bad for them.
I do think it speaks volumes about Ashley, he has one part of his business empire that as a market is struggling to keep up with demand, so he goes and guts it. What a penny pinching ****.
I'm sure he makes money, but it sure is an odd form of disaster capitalism...
Pretty rubbish
If you want to know where the UK is going, look over the pond.
"America, a rich country full of poor people."
If you've ever voted Tory, especially if you did in 2019 - you voted for more of this.
So glad I jumped when I did. a lot of the guys I used to work with (good guys) have jumped ship to Balfe's.
Our local Evans (New Oscott) has closed a few weeks ago. Staff there were very friendly, helpful and professional. So sorry they lost their jobs.
I wonder if the prospect of having very little to sell over the next year is a factor? It's all well and good saying the bike market is very buoyant at the moment but as the long waits for stock start to take effect there'll be detrimental impacts on the bottom line.
Seems like a strange thing to do. I've worked for Evans in Milton Keynes and at quiet times we only just had enough staff to keep up. At busy times it was impossible to get anything done, it was all hands on deck to serve. Gutting that store of staff is business suicide. A lot of staff there worked "goodwill" hours after closing to get the shop clean and tidy for the next day. That won't happen now. They have already lost their trade discount now they are set to lose hours or jobs. Sad
Wasn't it another leveraged buyout arangement, so it now has a load of debt to finance?
If you’ve ever voted Tory, especially if you did in 2019 – you voted for more of this.
Thinks: "Let it slide. Resist, must resist. Do as weeksy says."
Phew, managed to stay silent.
( nearly)
Better grab that last 2020 C2 Norco optic!
Jamj1974 - I used to use the New Oscott one a fair bit and found staff were excellent too . The shop has actually moved to the top floor of House of Fraser in Sutton. Top floor! Imagine taking your bike through all the designer clothing and up the escalators - My mate did that lol
The main mechanic left to work at the new Electric bike shop at the top end of Sutton.
Evan's were my go to store in the past but charging for delivery to store is a non starter for me when I can get things elsewhere delivered to my door usually free of charge. I was happy to do a short drive to pick up items but I'm not doing that AND being charged for the privilege.
My group of friends all loved their cycling events and that generated a bit of loyalty when it came to purchases - all gone now and yes covid has obviously played a part in the short term but I always thought that under the Sports Direct/Frasers umbrella they would never return.
It's easy to point the finger at Ashley (and I'm sure his ethos permeates down through the business) but realistically its his business managers making these decisions and you have to question their direction/competence.
Evan's could have easily become another CRC/Wiggle but they seem to have chosen to become a down market version of Halfords selling cheap rubbish and I dont think they will survive that decision in the long term.
If I remember correctly weren't they making a reasonable profit if you took the huge interest on the debt out of the equation?
Evans has been ill served by iterations of owners.
I just can't see the logic, ebike sales going up, bike sales going up, scale to enable it to compete. Buying stuff retail from Europe harder so less competition etc etc. Some rents maybe onerous but gutting the staff seems bonkers
It might need some restructuring but selling bikes and the associated services isn't the same as flogging sports fashion
The guy really is a queynte isn't he!
I see his point a bit around city centre rent
My local Evans only moved into the city centre from a location on the outskirts about 5 or 6 months ago. He can't have it all ways! Actually, given the lack of union influence, sadly he probably can.
The staff are essential for the serving aspect too. James Olsen (behind Pinnacle bikes) seems to have gone too, which is a real shame.
Maybe he's just more interested in flogging binnable tat.
I really hope that Pinnacle can get out from under Evans.
They make some great bikes (I have a mk1 Arkose) but I don't think it's a store I want to support any more.
Is this because greedy Ashley is trying to squeeze labour or because the business is still not doing any better? The former will cause a downward spiral for service and the latter would be a really astonishing failure considering how busy most bike shops and mechanics have been in the last year.
Simply off the headline, it’s seems crazy to slashing Evans of all things in the Ashley empire, given how cyling became so hip and trendy in the last year which lead to massive price hikes.
I would guess that Evans have done relatively well during lockdown(s) (compared to House of Fraiser?) seeing as recent circumstances have caused a rush on bike shops, But Ashley has probably been advised that 2020/21 bicycle trading conditions won't last and so has decided to use the cover of the pandemic to hack away at those pesky staff costs...
The imposition of zero hours for staff suggests Ashley is happy to drive away any knowledgeable/enthusiastic personnel for bog standard, minimum wage, shelf stackers (like any other Ashley owned business).
It's (unsurprisingly) short sighted, in an area of retail where quality of service and shop floor advice is the main USP that customers are willing to pay a bit of a premium for.
Deliberately eroding service for the sake of a bit staff cost cutting. if it's a race to the bottom and offering cheapest possible prices, then basically it's the wrong market for him to pick as He'll be competing with the likes of CRC/wiggle and other online retailers, while still retaining the costs of (now poorly staffed?) bricks & mortar shops...
I bet he's been planning this for a while, have Evans been taking advantage of the furlough scheme do we know? It wouldn't shock me, keep staff dangling on a subsidised 80% retainer, and when that looks likely to end sack a chunk and push the rest onto zero hours.
It's the kind of move someone who doesn't understand the business they've bought would pull...
Sad news, but hopefully any staff who were wanting a proper job might find more favourable employment elsewhere as the sector grows overall.
Yep a real shame, I used to spend most of my lunchtimes in the Birmingham branch. I unsubscribed to the email this morning, I can’t support what he’s doing to a good brand. Not that there was much to buy from there anyway.
CRC and wiggle have gone down hill since the venture capitalists took over too, time for a LBS revolution?
Not that I was ever a regular customer, but I haven't been in one (or on the website) since Ashley took over. The mere whiff of his involvement is enough to put me off.
This will come as no surprise to anyone remotely familiar with his past behaviour.
I was reminded how great the staff at the Leeds Central branch are the other week when I rang to enquire about a Arkose. Glad they sold out before I had chance to buy now and hope the staff are able to find a better employer elsewhere.
I tend to avoid Ashley Corp if possible but had let Evans off as they seemed to retain their identity. Not any more.
I’m not sure any of us is well placed to criticise this man’s ability to turn a retail business into cash for himself—his decisions may seem odd if you believe that the objective is to nurture a thriving and responsible specialist retailer, but I doubt that’s a concept that ever crossed his mind—but it’s sure depressing to see the country continue to creep its way towards towards an oligarchy that sees employment laws as merely a barrier to a quick buck.
time for a LBS revolution?
They arguably need to think about setting up distributor co-op's as a way of gaining buyer power to allow them to get towards competitiveness with CRC etc
Works in other industries
They have already lost their trade discount now
That's got to be a good chunk of any draw to working in a bike shop out the window. And possibly more importantly a big part of attracting the right people to the job - cyclists - people actually interested in the sport and equipment, with knowledge and enthusiasm for the subject.
Evans finally lost me as a customer when they started charging for store delivery of online orders. I was reluctant to use them after Ashley bought them but for some products I use they were the best place to get them plus I could swing in to collect on the ride home from work or with a quick 10 ride/30min walk from home. Really sad to see a good company being destroyed so quickly.
They arguably need to think about setting up distributor co-op’s as a way of gaining buyer power to allow them to get towards competitiveness with CRC etc
Works in other industries
Similar to what independent electronic and white goods do with Euronics would be my aim if I owned a bike shop. You keep your own identity if you want to, control your staff, service levels and opening hours but have access to cheaper stock. You can even go for a total branding as Euronics of you wish too.
Not that surprising. I use the one in Bristol as it’s near where I work but there are very few customers there and I suppose like everyone else they can’t get stock so they’re not selling much. That doesn’t seem likely to change any time soon when you look at ETAs for online store for products. It is a big city centre space any people aren’t buying much.
Also the Covid sales boom won’t last forever and again is no use if you haven’t got the stock.
Much as we may all knock Ashley he knows about business and probably has a good idea of where things are headed.
Feel sorry for all the staff.
My local Evans closed a while back (soon after Ashley took over IIRC), the unit is still available to rent at almost £6k PCM. It will remain empty for quite some time at that price as well.
Ironic that so many on here seem to think they can advise an incredibly successful billionaire businessman where he's going wrong . Sorry for all the staff if they are losing their job though .
It's all about long term rents and cost of staff. Rent is always long term. Even handing back after dilapidation charges will cost at least 50k and the rents and rates will be at least 80k py in any high street.
Expect all the shops to under one roof I.e house of Frazer ex premises. They then share staff to unload load etc.
Its hobbits gonna be for the future. Shops just cant justify the cost v profit.
Everyone is desperate to get out or rental if they can run online. Everyone then moves to trade counter industrial estates.
Axeing some staff I can understand, the normal flex of the costbase that every business goes through. Moving the rest to zero hours is ruthless and unnecessary.
Ironic that so many on here seem to think they can advise an incredibly successful billionaire businessman where he’s going wrong . Sorry for all the staff if they are losing their job though .
He didn't make his millions from bike shops, but he might be right. Alternatively other businesses will slip into the gap in the market.
Lots of people are spending quite large sums on ebikes and bikes for the first time, they haven't a clue about maintenance, are going to start to accumulate kit. The cost of inner city leases and business rates are always going to hamper but someone is going to make it work, could even be Mike
Thanks for letting me know, Smudge.
Better grab that last 2020 C2 Norco optic!
That may perhaps be one of the very few good things to happen if Evans were to close up shop, You'd be able to get a Norco at one of your LBS if they change over to a different distributor instead of Evans being the sole distributor in the UK.
Quite a few times I've wanted to get a Norco, but the unknowledgeable staff and the reputation Evans has for after sales service has meant I always went with alternative options.
Feel bad for the staff here, that the people who are doing so much for customers who get caught out by process problems or supply delays etc are being put in this position. If you read Evans Trustpilot reviews the good ones in recent times are almost all praise for individual staff members for going out of their way to help out. I realise a company might have the same employment rules across the group but they need to retain good staff who have technical and customer service skills to make bike retail work.
Can't they have full contract hours for key shop staff and zero hours for the part time staff, if they must? People need security.
I should probably stay out of it as an ex-employee but I've no personal complaints or agenda here. I just know people affected by this and I know how good so many of the staff at Evans are. Much of the good results come from them being good people with the right attitude to start with and the extra stuff can come from being supported and motivated by a company. Chip away at that and what happens for staff retention or the overall experience of staff and customers? Could be a tough job for someone to replace/rebuild that motivation.
Ironic that so many on here seem to think they can advise an incredibly successful billionaire businessman where he’s going wrong
A successful businessman is not automatically right about everything as a consequence of their success, and self interest is not the same as the public interest. Amazing how many people forget that.
I imagine he's very good at doing what he does, which is make a lot of money for his business. Whether that's good for employees, customers or wider society seems to be the thing people are getting a bit exercised about.
“Ironic that so many on here seem to think they can advise an incredibly successful billionaire businessman where he’s going wrong”
The same was probably said about Phillip Green. He got rich but screwed everyone else and the businesses he’d owned.
Capitalism is very short term. Doing the right thing isn’t.
Its a real shame as I've had a few wheel rebuilds from different Evans' over the years, and they've all been spot on. Screwing down on staff costs means the competent specialist mechanics will likely go elsewhere, so no more decent wheel builds at reasonable prices... (IIRC £40 including new spokes and nipples),
Darn it...
"Is the winning the great capitalism game to be the one person standing alone on a mountain of money that rises from a dead planet?"*
*or something like that, read online.
I'm drifting OT as ever but 'Let My People Go Surfing' has some useful perspectives. Yvon Chouinard is a good example of a successful businessman, proves that businesses can be beneficial in more ways than most are. It suggests it's largely a choice about how you do things. Probably also about government influence, support of your customers and the developing scale/power/influence. Complex but not impossible, like any business objective.
That's cheap for a wheel build. No wonder the shops are struggling to make money !
Therein lies the problem. We all want cheap stuff and good service. But they don't really go together. You add in online and next day delivery to your demands and its a wonder why anyone would want to own a shop, let alone a chain of them.
I do think customers demand for cheap, easy and fast has helped to create a lot of the current problems. This is also compounded by rates being high, but people don't want taxes to go up.
I do think customers demand for cheap, easy and fast has helped to create a lot of the current problems.
True, though there's a balance and price within a certain range is less important to most of us than service or quality. Maybe some compromise one aspect too far. Evans situation may be creating opportunities for other smaller companies to grow. Cyclical?
Ironic that so many on here seem to think they can advise an incredibly successful billionaire businessman where he’s going wrong
Is it "ironic"?
Is it your contention that we should simply admire him, and believe in his superior judgement simply because he's wealthy?
He's a Retail gambler who's had more bets go his way than not over the course of about 35 years... That doesn't make him some kind of 4D chess wizard...
Anyway didn't his estimated worth drop by around £0.5B back in 2018/19? Funnily enough about the same time he bought Evans, as well as buying House of Fraser out of administration, at the same time as the Belgians went after Sports Direct for a big chunk of back tax.
Isn't he still stuck owning Newcastle despite repeatedly trying to flog it?
Not that I'm questioning his genius, I don't think I could deal with all that irony...
Isn’t he still stuck owning Newcastle despite repeatedly trying to flog it?
I'll start by saying I am/was a Newcastle fan, haven't watched a game for some time but to say I dislike the f** b*****d would be putting it mildly. Ashley 'loaned' NUFC around £130million after buying the club, apparently after not really looking through the clubs accounts prior to the sale going through, although the NUFC DIRECT web address was registered around a year before and now handles the clubs official merchandising revenues. While he is owed this money by NUFC, which basically means he owes himself the money as sole shareholder, he can use the debt to offset tax liabilities from his other companies profits, as well as milking NUFC for as much as he can get ( merchandising, player sales etc). He is not as desperate to sell as a lot of people seem to think he is, unless it's for a massive profit, as it would've been sold long ago if he really was
Ironic that so many on here seem to think they can advise an incredibly successful billionaire businessman where he’s going wrong
Behind a lot of these billionaire business people seems to be a string of failed/failing companies that have been bought on the cheap, asset stripped, debt-leveraged, run into the ground and then sold off or declared bankrupt.
Billionaire comes out of it with some extra profit. Everyone else gets screwed.
Philip Green mentioned above is a good example.
Popped into my old store in Milton Keynes today. It's looking more and more like a branch of Sports Direct. Dump bins full of back packs and cheap locks, window full of cheap Mongoose bikes. My old manager (who has been running Hendon) was back to do the redundancy meetings. The notes are being sent off so that someone can "grade" the staff on a cost/benefit scale and decide who to keep. There will be 4 full time staff left. There was 13 when I started there 7 years ago and it was one of the most profitable shops in the company. Now I doubt it will be there in a year. I just hope my old colleagues find something else soon
Edit: I might have accidentally ordered some 5:10 Kestral shoes as well. Oops