Specialized to Open First Concept Store in the UK

As part of a continuing strategy to develop a tool to grow the overall cycling market, the Specialized Concept Store (Chester) Ltd is an innovative retail experience that serves cycling enthusiasts with a depth of products and range of services such as the BG Fit Centre. The store will be owned and managed by Bike Factory, a retailer of Specialized products for over 20 years. The Concept Store will be located next to Bike Factory, however it will be run and managed separately. The store will cover 3,500sq feet on two floors and will use the same designs and fixtures as the recently opened stores in the USA. Specialized bicycles and equipment will be sold exclusively but other products and brands such as locks or lighting can be sold alongside the Specialized range for a complete experience in this new professional, elegant and non-intimidating environment. Bike Factory already have a proven track record of creating a true union with its customers by offering an enriching retail experience. "We have a great opportunity with the location and with our history of the brand, Specialized was an obvious choice to partner up with in such an exciting project" says David Quinn, owner of Bike Factory. Richard Hemington, Managing Director of Specialized in the UK agrees, "the Specialized brand in partnership with our Dealers is ready to make this step and Dave Quinn and his team are ready to establish this for the future. We have no intention to take over existing businesses that are successful with their current store and brand mix. We seek to add outlets in locations where existing Dealers feel there is opportunity to do so". The pilot Concept Store is due to Open on the 25th of November 2006. www.specialized.com

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