Yet another sporting goods retailer closing down for good

As a retailer, it's fairly hard, if not impossible, to sell brands that also go direct-to-consumer (DTC).

Retail store owners can't compete with companies that cut out the middleman. That's why some smaller sneaker shops have limited their Nike sales. 

They can compete on the run-of-the-mill shoes, but not on the special releases. If you can buy the latest Jordans online directly from the company, which doesn't need to mark them up to cover overhead, why would you pay an extra 30% to purchase them in a store?

As a retailer, it's a vexing problem. When I ran Time Machine Hobby, a very large toy store in Manchester, Conn., we sold two products — Lego and Magic: The Gathering (MTG) — whose standard markup (what our competitors and most websites sold them for) did not cover our overhead.

In the case of Lego, we simply had to carry them or customers would go to other toy stores. We even chose to  honor customers who had 10-20% discounts, essentially making some of those sales break-even.

When it came to MTG, some online retailers sold at a 10% markup, which was essentially what our most loyal customers who get the biggest discounts paid. In that case, we lost money on the product, but made money on candy and beverage sales, since people played MTG for hours in our stores.

Yet when your vendors are also competitors, that makes competing impossible. This was a major part of what has driven Bicycle Sports out of business.

Bicycle shops and sporting goods stores have suffered

While sporting goods chains in general have been hit hard since the Covid pandemic, many bicycle shops have never recovered. That's because many high-end bicycle stores do custom fittings for people to match them to the right bike.

In some markets, that was literally not legal during the lockdown/social distancing period. That meant that at a time when bicycle sales were high, many customers went direct to online retailers or even the manufacturers themselves.

Once the pandemic cleared, local shops might get some repair or customization work, but they lost out on the initial lucrative sale.

That was not what happened to Bicycle Sports in Beaumont, Texas. The chain actually thrived during the pandemic (Texas was not known for mask rules, lockdowns, or social distancing).

Eric Bender, who owns Bicycle Sports, told his story to local 12 News Now.

"Covid happened and our business spiked. We had about 18 to 20 good months and then the decline continued from 2019 and so, three years later here we are," he said. "It's just a very difficult time right now."

Bicycle Sports sets a closing date

Bender was very clear as to why his store is closing. 

"My whole life is bicycles, 100% bicycles. Every brand that we sell, every brand that we represent is available online direct to the consumer and they don't appear to have a lot of regard for us as a brick and mortar outfit, so the margins are razor thin," Bender said.

Bicycle Sports will close for good on Oct. 18. Its website has taken down all information about repairs and now notes that "all sales are final."

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On its website, the statement "We strive to provide excellent service for sales and repairs" has a line running through it and the next line reads:

"We're just waiting on the Vultures."

Bender intends to retire after the store closes.

Direct-to-consumer bicycle sales surge

• In 2022, over 60% of bicycle sales in the United States were completed online, marking a 35% increase from the previous year.
• E-bikes were responsible for 63% of the growth in dollar sales of all bicycles between 2019 and 2023, contributing 20% of dollar sales and 4% of unit sales across the entire measured market in 2023.
• Online platforms now capture more than 21% of frame sales, posting double-digit growth as brands adopt direct-to-consumer models.

Source: PezCycling News

Bicycle Sports problem is not unique

Many formerly wholesale-only companies (like Nike) have also begun selling direct to consumers. That's called "network expansion," and it can lead to what's known as channel conflict, according to Berkley.edu.  

The channel conflict occurs when the same brand is selling at different prices in same or different distribution channels. The product availability issues in different channels, some channel partners (distributors/retailers) getting it early and others receiving it late or manufacturer deciding to sell through its direct-to-consumer (D2C) channel and competing with existing channel partner can also lead to a channel conflict situation. The channel competition and unrealistic business goals may weaken business-to business channel synergy.

When this happens, the brick-and-mortar chain either has to cut prices and hope to make up lost revenue on services and add-ons or risk losing the sale. 

If the wholesaler, or a digital-only retailer, sells at a lower price (sometimes lower than what it is allowed by the manufacturer in the case of third-party online sellers), it creates a problem for traditional retailers.

"Compliant retailers (especially smaller ones or specialists investing in product expertise, demo areas, and superior service) cannot compete on price with violators operating on razor-thin or even negative margins just to drive traffic or market share. This forces them to either lose sales or match the unsustainable discount, destroying profitability," 42 Signal shared.

Sporting goods and bicycle retailers closed since 2020 

• Modell’s Sporting Goods: Founded in 1889, this New York-based chain filed for Chapter 11 bankruptcy in March 2020 and closed all 115 stores by August 2020. The brand was acquired by Retail Ecommerce Ventures but faced further financial struggles, including a potential second bankruptcy in 2023.
• Sherman’s Sports and Army Store: A family-owned business in Hendersonville, North Carolina, that operated for 103 years before closing in 2025. The owners retired after realizing their daughters did not wish to continue the business.
• Sports Palace Inc.: A sporting goods store in Torrington, Connecticut, that was dissolved in 2023 after failing to file annual reports since 2016. 
• Bicycle Sports (Beaumont, TX): A family-run shop operating since 1984, it announced its closure in October 2025 due to a 40% decline in sales attributed to e-commerce competition and rising costs.
• The Pro’s Closet: A used bike retailer that ceased operations in late 2024 after raising $90 million. The company liquidated its inventory with discounts up to 90%.

Related: Another sporting goods retailer closing forever after 103 years