Rapha closes its store in the USA due to the "current market dynamics"

Rapha lowers the blinds of the United States office with the dismissal of a large part of the workers. The British clothing firm rethinks its strategy to face the difficulties of the market and to find a solution to the six years of losses it has been experiencing. The company assures that they will provide all possible support to those affected.

Rapha wakes up from the American dream: office at a minimum to reposition the brand

The cycling industry is experiencing uncertain times in the face of a downpour that continues to fall heavily and seems to be affecting more and more market players. The current trend is hitting -almost- everyone after the years of prosperity that came as a result of the pandemic, although exceptions can always be found, as in the case of Colnago. The clouds cover the horizon as brands react as best they can and try to anticipate future events.

Negative headlines have been relentless in recent times, led by many of the leading manufacturers in the sector. Shimano -beyond other information that has compromised the brand image- reflects like no other the tough economic moment the industry is going through with a new drop in sales.

Now, Rapha is in the spotlight by deciding to almost completely close the office and headquarters in Bentonville (Arkansas, United States), which the company had been operating since 2020. The British firm has been forced to restructure the brand's strategy due to the "current market dynamics," as Rapha's CEO, Francois Convercey, commented.

The news, first published by Velo, means the dismissal of six of the eight workers in the Arkansas office. The other two workers will remain at Rapha, although one of them will do so in another position within the company, according to this publication.

Convercey explained that "we are realigning Rapha to better reflect our strategic priorities and the current market dynamics." The CEO stated that "organizational changes are always a challenge and I want to extend my gratitude to everyone at Rapha for their hard work; we will do everything possible to support those affected by the organizational changes."

Furthermore, "the functions of the United States in Bentonville were affected due to the consolidation of resources in London," but he explained that Arkansas will continue to be the American headquarters of the company.

Rapha already carried out some layoffs in 2018; the truth is that it has been a difficult time in terms of financial results, with six consecutive years of losses. In fact, some reports indicate that last September there were several layoffs in the customer service department at the United States office.

Last year, a statement was released in which Convercey stated that "our financial results highlight the impact of turbulent years and the challenges facing the company and the cycling sector as a whole" while mentioning that the cost of living had eroded consumer confidence, as well as the arrival of new competitors in the market.

On the other hand, he added that they had managed to retain many customers who joined during the pandemic and had acquired new ones.

Rapha has been putting its mark on cycling clothing for two decades. Born in 2004 by Simon Mottram, it has become a flagship of premium cycling clothing. The commitment to professional sports came almost from the beginning with the sponsorship of the British UCI Continental Rapha Condor team, although it took an even bigger leap by dressing Team Sky from 2012 to 2016.

Now, it is present in the women's peloton with Canyon/SRAM since 2016 and in the men's with EF Education First Pro Cycling since 2019.