Maybe cheaper, you would need to crunch the numbers. Turnover (not profit)* was £90 million in 2011 with growth of 50% for the past few years so maybe closer to £120 million with some 600,000 customers in 80 countries.
Some interesting figures here - http://cyclingiq.com/2011/11/24/more-wi ... lian-home/
have 300 staff (reports I've heard of up to 500), they probably pay them on average $1000 gross each per week (NFI about UK pay rates). Anyone know how much a 45,000 sq ft warehouse costs to rent? How many millions of dollars worth of stock do they have with over 250,000 lines?
They would have a pretty hefty postage/freight bill as well with all the free shipping deals they give out. Most LBS charge customers for mail/freight for phone/web/mail orders.
Being a warehouse they would have literally miles or racking and shelving. Machinery such as forklifts would be needed as well and probably a delivery/pickup vehicle or two as well. Chain Reaction
Cycles employs upwards of 330 people, sends out 30,000 orders every week, and reportedly turns over some £77.5 million. People should take these order numbers into account when having a whinge that their order got screwed up. $h!t happens when you are dealing with that much stuff!
Average LBS might pay (guessing) $1000 week rent. Might have 6 employees and have $150,000 worth of stock? Not many do deliveries, though the boss most likely has a company car.
Any LBS employees care to give us some accurate figures?
* £33.2m turnover in the year 2009
to the end of January and pre-tax profits of £2.6M