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Wal-Mart announced Tuesday that it will chop prices between 10 to 30% this week on groceries, electronics and other home-related products in an effort to keep its cash-strapped consumers excited about shopping.
Traditionally winter has always been the slow season for bicycle retailers. You’ll often find that shops are more likely to sell previous year’s models right above cost or sometimes at or below cost just so they can move merchandise. But with the current economic state that we’re in, analysts are predicting that we are heading for a recession. Some even say that we’re in it already.
With that in mind, I’m wondering if some bicycle retailers will adjust their prices in order to attract business during the slow times. If they don’t I’m curious to see if they are more willing to bundle items together to see more of it. For example, if you were to buy a $900 bicycle, would they throw in a free helmet and water bottle? What about giving incentives to customers such as a free tube with any purchase over $40?
But the other side to this dilemma would be that people are going to ride their bikes more often, especially with the higher gas prices, global warming and etc. People are more likely to ride bikes now than they ever have before. The whole bike industry is gearing up for utilitarian style bikes and have the bike commuter in mind when it comes to new products for 2008. I wonder if the surge of bike commuting will help sustain the bicycle retailer during slower times.