I agree with you on the Direct, it is what they know best and less Overheads and more Focus on Consumer.

But also they will Keep the Retail for Consumer which i believe it is a smart move as the retail also give the brands more exposure especially now a days the on-line list and catalogs give consumers more choice, so eliminated that fully will give competition an advantage.

for Example Amazon, http://www.amazon.com/Home-Gyms-Strength...

i believe Consumer Retail and direct complement each other, they could even choose to focus on certain models for each channel.

Commercial got a lot of line-ups but need more resources and after service support & pressure on margins.

So Focus on Consumer, brands, Innovation, Design, Small Agile Organization could propel it to the Glory days.