Cycliq expands into Canada with access to bricks and mortar and online distribution
Prominent distributor of high-definition camera and lighting combinations for cyclists, Cycliq Group (ASX:CYQ) announced on Thursday that the company had expanded into Canada, establishing a direct sales agreement with Mountain Equipment Co-op (MEC), as well as launching on the Amazon Canada platform.
MEC is a retail cooperative which sells products directly to its membership base of about 4.3 million. Its subscribers are based both in Canada and overseas.
MEC’s management noted the attractions of CYQ’s high quality/value for money product. The company has 22 bricks and mortar stores across six provinces and a substantial online retail presence.
It should be noted that CYQ is still an early stage company and investors should seek professional financial advice if considering this stock for their portfolio.
While CYQ’s strategy has been to target online distribution channels, accessibility to MEC’s store network will provide potential buyers with a ‘touch and try’ opportunity.
On this note, CYQ’s Executive Chairman, Chris Singleton said, “Cycliq’s recent market research indicated that buyer behaviour warrants a distribution model that includes a mix of both bricks and mortar retail as well as online sales.”
Singleton noted that the timing of this transaction was perfect as Northern Hemisphere countries approach the summer cycling season.
Canada is the fourth country in which CYQ has established a direct sales channel via Amazon’s e-commerce platform.