Originally Posted by
ARider2
Trek is buying up a lot of locally owned independent bicycle shops. This is moving the mix toward corporate owned stores and away from locally owned stores. It is increasingly difficult for small locally owned stores (and chains) to compete with corporate owned stores and brands that are internet-only bicycle brands, and internet-only parts and accessories. While customers who strive for the lowest prices go to the internet and others go to big box stores or corporate owned stores the small locally owned independent bicycle shop is slowly disappearing. This is also happening in other industries and is causing a shift from small business to corporate owned and big Wall Street backed businesses.
It's been heading in that direction for many types of businesses. My thinking reasons that the available credit is easier to obtains to the big named brands likely because the creditor doesn't look closely at how leveraged the existing assets actually are. example: 2 B&M stores initially established using easily traced income & assets. Trying to obtain more footprint, so those established 2 B&M stores are used as a means for additional credit in order to obtain store #3. Shortly after having #3 established, more credit is applied for to obtain 2 additional stores using all 3 existing stores as collateral. Having a total of 5 stores operating, the need for additional buildings are on the horizon. To build more stores, the company uses all existing 5 stores for the new line of credit to build 4 more stores. With each established store, drives for more supply, larger workforce, etc etc.
The faster the underwriters can produce the documentation, the quicker the general contractor can break ground.