NEW YORK, NY (BRAIN)—Cadence Cycling & Multisport will close its Manhattan studio on May 17, citing slow sales due to the fall of the financial sector in the city.
The Tribeca location catered to investment bankers and other Wall Street heavy hitters and when the recession hit last fall, those customers stopped shopping.
"The number of athletes that we're coaching both in New York and Philly are at record high so that's a good sign, but in New York, the retail side fell off so dramatically over the last 12 months we could not sustain a business," said Cadence owner Jay Snider.
Snider said the Tribeca location also ended up working against the business.
"It"s well-located for professionals in the finance industry. When that industry faltered, the lack of foot traffic in the area inhibited our ability to attract new customers to replace ones we had lost in the economic downturn," he said.
Cadence opened in Philadelphia five years ago with an emphasis on high-end products and full-service fit, training, testing and coaching facilities. Cadence expanded to Manhattan in July, 2007. After a bit of a slow start, business was steady from November to April of the following year, and the store posted a profit in March and April 2008. Then, sales declined seemingly in lockstep with the waning financial sector, Snider said.
"This March, business was half of what it was last March. That was not sustainable," he said.
Snider looked at other options besides closing, like moving elsewhere in Manhattan or scaling back the existing location, but two weeks ago, decided that ending operations in New York and focusing on the successful Philadelphia store as well as building Cadence's coaching brand was the most viable plan for the future.
The Manhattan store will remain open in full operation until May 17. Snider said inventory will not be discounted. Product that doesn't sell will either be returned to the supplier or transferred to Philadelphia.
For more on Cadence's shift in merchandising strategy, why Snider believes his business model is still viable in today's economy and plans for potential expansion in the future, read the June 1 issue of Bicycle Retailer and Industry News.