I knew about the challenges with lease costs (for the DC Junction), and see quite a bit of other bike companies making the same decisions regarding renewals. But to get a macro-view of why a lease decision has to happen and how Brompton wants to position itself, well that just made me nod a bit. I get it.
The London-founded folding bike specialist closed its branded stores in New York and Washington last year when their leases expired. In contrast, it opened a new outlet in Shenzhen and doubled the size of its flagship Shanghai store following a major refurbishment.
Will Butler-Adams, Brompton’s managing director, said the decision reflected concerns about policy unpredictability in the US. “We decided the leadership was so unpredictable, anything could happen,” he said, adding that tariff volatility made long-term commitments difficult.
“If the tariff goes up to 25 per cent and we become uncompetitive, the whole store proposition is at risk,” he said. “I’m not going to sign a five-year lease in this environment.”
His comments follow a US Supreme Court ruling that many of the tariffs introduced since 2024 were unlawful. However, the administration subsequently confirmed a temporary 10 per cent global tariff, later raised to 15 per cent, adding to market uncertainty.
Article: https://bmmagazine.co.uk/in-business/brompton-bikes-us-tariffs-china-expansion/
Looking five years out (as a consumer) there’s decent positives about the viability of folding bikes. A question to the speed at which Brompton is moving. And confusion to where the US market will be that isn’t recreation-focused. So I get it (their store moves, that is)… and hope that neither of my B’s end up like my Nokia N9.
by arjwrightdotcom
6 Comments
So I guess business are looking ahead and seeing that the China will soon be the worlds main consumer market?
Yeah, one of the reasons I got my Brompton specifically in the December after the election was to beat any new tariffs. Predictably, I made the right decision.
Oh, hey! I know which store in Shenzhen they’re talking about! Brompton’s push into China is remarkable, to say the least.
>…[Will Butler-Adams](https://bmmagazine.co.uk/get-funded/brompton-bicycle-confirms-first-equity-capital-raise-for-35-years-from-bgf/), Brompton’s managing director, said the decision reflected concerns about policy unpredictability in the US. “We decided the leadership was so unpredictable, anything could happen,” he said, adding that tariff volatility made long-term commitments difficult…
This is all one has to know. It’s hard to implement a business strategy in the face of such capricious volatility. Every company’s resources are limited and they are best directed where returns are calculated to be the most promising. Brompton’s managing director might as well be speaking for many companies.
While there may not be any more Brompton stores in the US, you still have many Brompton dealers around the country. I don’t think your bikes will end up like your Nokia anytime soon.
So I guess the promised spring re-opening of the New York story isn’t happening?