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Commuter cyclistRetailers not benefiting from Britain’s ‘bike boom’ – but is one really happening?
A ‘bike boom’ sparked by the success of Britain’s top cyclists on the road and track and the staging of major events here may have translated into greater interest in cycling, as well as more journeys being made by bicycle, says the Daily Telegraph – but it isn’t translating into growth in sales for many of the country’s bike retailers. The full picture may be a bit more complicated than the newspaper’s article suggests, however.
The Telegraph cites figures from the National Association of Cycle Traders (ACT) showing a 15 per cent increase in the number of bike shops within the past decade, a period that has also seen online retailers Wiggle and Chain Reaction become global brands.
It also highlights government statistics that show steady growth in the aggregate distance ridden each year since 2005, as well as a 7 per cent rise in the number of journeys undertaken by bike last year, equivalent to an extra 50 million trips.
Mark Walmsley from the ACT told the Telegraph’s Andrew Critchlow that what should be positive news for the retail trade is not feeding through to the bottom lines of businesses operating in a sector now thought to be worth £2 billion.
“Those inside the industry are widely agreed that the market is not booming to anything like the degree widely published and certainly not in commercial terms,” he said.
Is there a boom?
We suspect there are a number of factors behind that, not least that the so-called ‘bike boom’ isn’t in fact happening uniformly at national level; in some places, yes, cycling is booming, but in others it is in decline.
The figures cited by the Telegraph, which doesn’t give a precise source, appear more recent than the 2011 Census figures, but the latter show that in terms of using a bike as the main mode of travel to work, there was little change across England & Wales over the previous decade.
Indeed, while some places – London, and especially its inner boroughs, and cities including Brighton & Hove, Manchester, Newcastle and Sheffield – saw strong growth in the number of bike commuters, that was offset by declines elsewhere, with six in ten local authorities seeing a fall in the percentage of people using their bikes to get to work.
Meanwhile Sport England’s Active People Survey for the year to April 2014, which includes competitive and recreational cycling but not cycling for travel purposes, shows 2.225 million people in England cycling at least once a week over a four-week period, up 4.93 per cent on the previous 12 months.
Walmsley says: “Cycling isn’t mainstream enough yet; it is still a relatively small retail sector. It remains male dominated in business and usage, but retains lots of potential for the future.”
Space4Cycling
Campaigners argue that one of the ways to unlock that potential would be to provide people with somewhere safe to ride. While the likes of British Cycling stress that riding a bike is an inherently safe activity, the perception of danger has been found in a succession of surveys to be the single biggest deterrent to people taking to two wheels.
The Telegraph says that Britain’s sporting success in cycling has led to investment in improving the country’s cycling infrastructure, although that’s a point cycle campaigners would dispute, not least because much of what has been built in recent years is, say many, woefully inadequate.
Belatedly, things may be starting to change at local level – TfL’s plans unveiled yesterday for north-south and east-west routes across the capital have on the whole received a positive response – but cash pledged by central or local government is not yet translating fully into actual spade-in-the-ground work.
Moreover, it is still only around a fifth of the £10 per head that politicians from the All Party Parliamentary Cycling Group and the House of Commons Transport Select Committee say should be spent.
Another factor that is skewing the figures is the emphasis on road bikes, partly driven by the middle-aged man in Lycra (MAMIL) phenomenon, but the opposite side of that coin is that any growth there will be offsetting declines elsewhere.
Britain’s biggest bicycle retailer, Halfords, says that business is booming and has tapped into that trend by buying the Boardman Bikes brand as well as now selling some Pinarello models – not by coincidence, the brand ridden by Team Sky, whose back-to-back Tour de France wins in 2012 and 2013 have helped boost interest in the sport.
“At the higher end it’s an aspirational market,” Walmsley points out. “The products and cycle technology are ever-developing and the more you cycle the more you appreciate the value for money.”
The Telegraph says that the government’s Cycle to Work scheme – the biggest provider of which is Cyclescheme, with more than 2,000 employers signed up – initiatives such as the ACT’s Ride It Away scheme have benefited retailers, but from 2011 there has been above-average inflation in the cost of bicycles, which had run below other consumer items for the past two decades.
Former GB amateur rider David Standard, whose father Sid took over Arthur Panter’s bike shop in Beeston, Nottingham and ran it for nearly 30 years, told the newspaper: “The explosion in the popularity of cycling has been astonishing and has led to great innovation and much greater choice than we could have dreamed back in the Seventies and Eighties.
“However, the issue for many new to cycling is: what do you actually need and how much do you need to spend. In my opinion a decent racing bike nowadays is £3,000, anything over that is not going to make any difference,” he added.
But what about cheaper bikes?
What’s less easy to gauge though is what is happening at the lower end of the market. The growth of online as a sales channel, and the fact that retailers such as Tesco are selling bikes both in some stores and through their website, is likely to be sucking value out of the market and hitting the sales of many of the independent bike shops for whom utility bikes, not racing machines, represent their bread and butter.
Another factor that may be hitting sales of new bikes is the second hand market, the size of which is impossible to quantify.
Not everyone who upgrades to a new bike has the space or inclination to keep hold of their old one, and the likes of eBay and Gumtree make it easier than ever to sell an old one on, while we also hear plenty of stories of people giving it away or selling it to a family member or friend.
And each bike that passes into new ownership in that way represents a potential lost sale for bike shops.
It’s a complicated market, and the absence of detailed official statistics makes it difficult to assess the national picture, meaning some guesswork needs to be employed. There’s little doubt that in some areas, the cycle trade is booming, in particular in those areas seeing increased uptake of riding bikes, such as parts of London, witnessed by the continual opening of new stores.
But until there is adequate investment in infrastructure that people perceive to be safe, and not just restricted to certain cities but across the country as a whole, a nationwide cycling boom – and consequent boost to the retail trade – is unlikely.
There’s one other factor impeding progress that is out of the control of retailers, cycle campaigners and politicians alike – the British climate.
As Walmsley says: “Bike sales growth has been muted in recent years, although the recession didn’t impact as fast and hard as in other sectors it did appear to have a delayed impact.
“The greatest influence over cycling and sales is good weather and a long period of it. The UK remains predominantly a nation of fair weather cyclists and the last few years – before this year – have seen extreme weather conditions which have impacted negatively upon cycling and sales.”
Simon joined road.cc as news editor in 2009 and is now the site’s community editor, acting as a link between the team producing the content and our readers. A law and languages graduate, published translator and former retail analyst, he has reported on issues as diverse as cycling-related court cases, anti-doping investigations, the latest developments in the bike industry and the sport’s biggest races. Now back in London full-time after 15 years living in Oxford and Cambridge, he loves cycling along the Thames but misses having his former riding buddy, Elodie the miniature schnauzer, in the basket in front of him.
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23 comments
Interesting to note that people like "crikey" can only resort to emotive attempts at character slurs and no evidence or intelligent comment.
FYI, I do not question that reasonable quality bikes (barring for the occasional manufacturing error) are adequetely robust while being ridden. What I do say is that many people are sold bikes that are not robust or practical in everyday use, e.g. a carbon frame that shaves off an ounce or two in the interests of speed will not stand being leant against lamposts, cycle stands, walls etc for very long at all. That is even supposing that there is anyway of carrying any luggage on them in the first place. Things that a bicycle needs to do in order to be practical or useful in everyday use.
"jacknorrell,s" comment rather demonstrates my point. Four years use? come on - your expectations are far to low. My motorcycle, which cost less than many a bicycle, over fourteen years ago (with 2000 miles on the clock) and has now covered close to 40,000 miles does not yet need fork seals replacing. In fact the cost of all neccessary parts fitted to it do not come close to the purchase price - and that includes tyres.
I can specifically tell you that a well known mid-range cassette and allegedly high quality chainrings lasted for well under 4000 miles. That includes turning the chain rings on the crank and running them backwards - so absolutely worn out. Whearas in exactly similar conditions on the same bike an older "true" 3/32" Regina six speed freewheel (with exactly the same range) and steel chainrings lasted over 9000 miles and were changed when I eventually wore out the wheel rims and now grind round on a MTB. (which has deore XT derailleuers - which are only 14 years old; so can't tell if they are up to it yet).
I maintain my view that a great deal of new kit is nothing more than over complicated, uneccessary, overpriced gimmiks which only improve performance a negligible amount (study the Tour times since the early 60's) and add nothing at all to everyday practicality or reliability.
BTW the latest steel tubes can be used to make a frame lighter and stronger than Ti, they'll cost you a great deal more though.
When you are a retailer and your sector suddenly becomes trendy, everybody wants to have a go. A whole load of new shops all selling pretty similar stuff open up.
You have to discount to keep your customers because some of those having a go have no business sense, don't have proper margins, wonder why they don't make a profit & close having damaged responsible traders.
Though the size of the cake may be bigger, the slices are smaller.
Meanwhile, we all send off for the really expensive stuff don't we?
I'm not sure where Giles is buying his parts... new racing-specific kit isn't meant to last forever, but can take a serious beating.
The higher-end road/trail kit meant for everyday use lasts extremely well, especially if maintained reasonably.
My now-sold full sus MTB went through 4 seasons (well, year-round really) without a proper fork/shock stripdown and the internals were still clean once I did the work. That's actually amazing, and those parts were bought in 2003! The current stuff is BETTER, not worse.
There is a lot of EBAY cycling trade going on behind the scenes. The numbers are staggering. Look at some of the top traders and see the number of transactions.
Started a club 2 years ago in our village. Went from 2 to around 8-10 regulars on twice-weekly rides.
Out of everyone (20 people?), I can think of four new bike purchases in the last two years. Everyone else has been upgrading via eBay.
...and you see a lot of Islabikes, Canyons & Ribbles about, don't you? none of those came via a LBS.
So yes, the elephant in the UK cycle trade room is eBay/Gumtree. Which is why I believe *service* is the opportunity for LBS, not bike sales.
Planet X & Ribble has growing all the time, seems a odd article. Cycling in Yorkshire is booming, our club is getting huge numbers of new members.
Presumably Giles is a little uncomfortable from riding his steel steed with solid rubber tyres while wearing horsehair underpants...
Modern day road bikes are considerably more robust than people give them credit for, and I speak as someone who has ridden steel, alloy and carbon race bikes.
I'm presuming that you wear clogs Giles?
Wonder if Halfords are part of ACT? It was only a few months ago that this very website was reporting on the boost that cycling had given their results - linky.
Unless you do phenomenal mileages - perhaps over 4-5000 a year Comrade, then their is little reason why you should have had to change many parts. Apart of course from such as tyres and chains.
...wow, and I thought it was cos I've had the same push bike for 6 years! I just keep replacing worn bits...
Methinks it is the cycle industry crying "wolf" to cover their own mis-calculations. I have no sympathy whatever - sooner they go "bust" the better. They are for the most part (IMO) nothing more than a profiteering bunch of fashionistas, who will do anything to lift the money from your pocket, in maximum quantities, money is their one and only desire.
For a start; what according to fashion are now called "road bikes" are no such thing. They are mostly delicate track racing similes designed to go down superbly smooth tracks and be chucked away at the end of a race, whilst costing maximum price for fashion accessories. These bikes have nothing to do with everyday reliability and riding pleasure in all conditions.
The components now for the most part "pushed" by these companies have nothing to do with value for money - in terms of miles done over the years in all conditions this has nothing to do with it. Conversely money spent on fashion accessories in as short a time as possible has.
I find I increasingly have to source parts from secondhand dealers in order to find reliable reasonably long lasting parts, as used to be supplied, which takes up more of my time.
Even the reviews on this site, which are supposedly highly regarded, seldom ever mention whether the parts are road legal to use - I'am thinking of the light reviews in particular.
If these people were really interested in cycling they would encourage long lasting practical parts and would incline towards everday longevity and reliability rather than that which makes most money. They would thus point out the advantage and charisma "everyday" cycling has and that it deserves on so many levels and play down the overpriced delicate machines that racing profesionals use.
The bicycle industry would neccassarily have to contract if it met these objectives.
there are plenty of long lasting modern components. Get a touring bike with Deore XT.
i am as a retailer prepared to speak quite openly about this with other retailers, but would prefer this to be a properly open discussion.
Go on then! After many years in the game I know full well how the customer gets shafted and how it isn't the bike shop doing the shafting.
Now I am truly independant and only deal in used bikes I can say for sure that business is booming, but I'm not part of ACT.
n+1.
bit of a 'glass half empty' report methinks.. It seems to me that the cycle industry is one of the (very) few industries where independent retailers CAN (and do) complete with the national chains and online vendors.
How many independent photography or computer shops do you see these days? Frankly, its little short of a miracle that the cycle industry has been able to hold onto its small scale, independent vendors in the current financial market.
the amount of new shops I see opening and existing ones expanding, kind of suggests that the industry is doing OK.
Lots of £99 and less MTBs getting people to work. There is also a big second hand BSO market.
If manufacturers built bikes like they built washing machines (short lifecycle) the market would have a bigger turn over.
The reality is that there is plenty of action in the cycle retail trade, its just that the trade has cut its own nuts off by giving its margins away.
If you have financial backing you can make a lot of money retailing bikes, but if you don't have the capital to buy big and sit on stock, you are on to a hiding to nothing !
In fairness, the hand of small bike shops has been forced in this regard as they have to now compete with the likes of wiggle/chain reaction/merlin etc. I doubt any of them have willingly found themselves slashing their own margins.
This is of course purely annecdotal, but in Glasgow the number of cycling club members has boomed. Several bike shops have taken on new staff, and those I talk to all point to a big growth spike following the "wiggins effect". My old LBS told me business has never been so good.
Good Lord. £3,000 for a 'decent' racing bike. ??
You could call it 'the MAMIL factor'. There's plenty of disposable income around and people don't want to feel inferior.
There are always flashy new bikes going out of the door of my LBS. The other main shop across town has moved to bigger, better premises. They are apparently doing very well too.
My cousin used to race nationally 25 years ago, that's what a decent racing bike cost then too.
Key part of the phrase being 'racing', not 'bike'. A good road bike can be had for £1,000 or less, brilliant ones for a little more.
Decent MTBs have gone up in price, but the functionality and quality of kit has as well.
A confused article from the newspaper.
Britain has always scored highly for bike sales. It just has too many at the back of garages that don't come out. A few more used for transport is what you really need.