As @
tcs mentioned, the store could well have a couple million dollars tied up in real estate. Plenty for a frugal person in their 50's to retire early.
However, many companies also seem to end up upside-down. Perhaps covering some winter payroll and inventory with loans, then just not getting it paid off in the spring, and repeating the next year with more loans.
Originally Posted by
veganbikes
Bike shops are closing yes, but not because the services are performed easily but because companies like Amazon sells things very cheaply and smaller businesses cannot compete with a multi-billionaire. We are still doing plenty of service at all of our shops but since it is so easy you should do it for a living.
Keep in mind that Amazon is not a homogeneous company, but rather made up of many small companies, much like E-Bay. In the past some college students would even re-sell their books on Amazon.
Companies like Niagara used to advertise heavily on Amazon. They had their own websites, but could get additional sales traffic on Amazon.
In fact, perhaps what Amazon does is levels the playing field so the little guys can compete next to the big guys. The fulfillment centers are somewhat like a glorified consignment system.
I occasionally buy stuff online from REI. I usually check pick up locally, then in a week or so go to the store and pick up my order, perhaps also do some shopping in the store.
A bike shop could do something similar. Put all the inventory online (which helps electronic window shopping). Add inventory with say 3-day in store pickup for stuff acquired from a local wholesale company, thus actually selling more than they have in stock.