On the other hand, Scott has found that high gas prices can motivate consumers to opt for biking as an alternative mode of transportation, resulting in more business. He uses a line of credit to bring in products during the winter and then pays it down when sales go up in the spring. Scott adds that due to the seasonality of his business, the increase in interest rates will be felt by Century Cycles. Holistically, Chris believes that rising interest rates coupled with additional factors, including a falling stock market, consumers feel they have less spending power, but he’s hopeful that this is transitory rather than recessive. Interest rate increases by the Federal Reserve Both Scott and Chris are experiencing inflationary pressure and increasing their prices to adapt, something, they say, that customers are generally understanding of. When demand is greater than supply, prices tend to go up and is a contributing factor to inflation. Retailers, including Chris and Scott, are attempting to mitigate long lead times by expanding their inventory quantity and selection. Ongoing supply chain issues have left them both still trying to get caught up on orders two years later. At times during 2020, Century Cycles had even sold out its inventory on its sales floors. The growth, Chris says, “has carried over through 2020, into 2021and is still trending even in 2022.” Scott saw a similar increase at Century Cycles as many Americans leaned into outdoor activities during extended stay-at-home orders, including riding bikes. Litehouse saw a significant jump in demand during the pandemic as people began spending more time at home and sought to upgrade their entertaining spaces indoors and out. Watch or listen to the full episode here to hear all the finer points. They share their perspectives and insight into the state of the retail industry, in addition to their advice for small business owners building their business.īelow are some top highlights from the conversation with Kevin, Scott, and Chris. In our 17th Sharing Knowledge Series episode, host Kevin Vonderau, chief lending officer at Westfield Bank, is joined by guests Scott Maloney, owner and president of Century Cycles, and Chris Curcio, CEO and president of Litehouse Pools & Spas. Insight from small business owners in the retail industryįrom the pandemic and inventory shortages to shifts in the economy and consumer expectations from online competitors, the retail sector is battling constant change.
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