Friday, 29 March 2024
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Pure Electric has retail chains and a brand make enquiries on stores

Following on from the revelation that Pure Electric will refocus its energies into the electric scooter space and leave behind much of it physical store portfolio in the UK, the business has indicated that the retail estate is already peaking the interest of other electric bike retailers, as well as a similarly unnamed bike manufacturer.

Since CI.N broke the news on Monday night one common theme in the industry commentary has been offers to take on skilled staff affected by the closures, with retailers such as Velorution, Decathlon, South Downs Bikes and folding bike brand Brompton just some of those to make vacancies known to those reading via social channels. There are of course plenty more vacancies available within the vicinity of stores set for closure, some of which you can find here.

A Pure Electric spokesperson has since expanded upon our earlier story, confirming that there will unfortunately be redundancies, stating “we’ll be working through the process with our affected colleagues and looking at all options.”

Rumour of the CEO’s departure, however, are incorrect. Rebecca DeNiro, in place since the departure of Peter Kimberley, will now move to focus “on Pure’s upcoming NPD launches and global expansion, while supporting Founder Adam Norris in his move to becoming CEO.”

In pointing to what comes next for the retail portfolio, we learn that the opportunity to take on some of the leases is being explored by those looking to build upon their property portfolio and that’s not limited to retailers; a bike manufacturer has apparently also made enquiries.

“We’re in discussions with a number of other retailers about the prospect of them taking on some of our retail estate and colleagues. We’ll be working this forward over the coming days and will provide updates as and when we have solid news to share,” said the spokesperson.

So, has the timing of the Queen’s Speech confirmation that legal frameworks around electric scooters will change prompted the strategy shift?

“E-scooters have always been at the heart of the brand. We’re pleased to see the positive trajectory towards legalisation in the UK, although it’s not something that has specifically affected our recent choices. Covid looks to have been a big factor in the acceleration of the e-mobility category across the globe, with e-scooters being a major beneficiary,” we’re told.

The structure shift means that Pure will go all guns blazing on the electric scooter category globally. At this early stage in the market’s development the retailer and manufacturer has a strong claim to being among the market leaders. Currently the brand is seen in France, Spain, Belgium and the UK, but plans exist to add markets and grab share with own-label product, something which has seen heavy investment in recent times and which, according to the business, is seen as a prospective and profitable way to progress.

Direct to consumer sales will drive this with additional third-party partnerships seeded into retailers in active markets. France, for example, already has a significant, country-wide footprint of stockists thanks to over 180 points of distribution through partnerships with FNAC and Darty.

Though no names have been declared, there is a trend in the bicycle industry for brands to open own-label retail stores, either by acquiring existing retailers, or by securing prime retail locations in key shopping districts. Trek, Specialized and PON are currently rapidly expanding their owned portfolios in the USA and there are signs that the behaviour is increasing in Europe.