Bicycle Sales Increase
Dealer sales
Ad hoc stats from the Association of Cycle Traders (ACT) show that independent bicycle dealers had a good year overall, but a very challenging fourthquarter. In October 2008 63% struggled with decreasing revenues. September was different and showed that 65% of the dealers were able to increase their turnover while also in August, July and May the number of dealers that reported revenue growth outnumbers the ones that said to experience a declining turnover.
The independent chains continued to take market share from single store IBDs but true independent chains are now rare. Cycle Surgery, for instance, expanded in 2008 but is no longer independently owned. It’s part of the Snow+Rock group. Formerly London only, the Cycle Surgery store brand was carried over to stores in Romford, Wirral, Birmingham, Didsbury, Port Solent, Bristol and Chertsey. It now has 15 stores nationwide.
The biggest of the powerhouse IBD chains - Evans Cycles - spent much of 2007 and early 2008 fending off claims it was about to be sold. It was seeking a bigger shareholder, said Evans, with cash to fund expansion. In April, a deal was finally inked. Active Private Equity acquired a majority stake in the business via a combination of acquisition and growth capital. In the past five years Evans Cycles has added 20 stores and expanded outside of its South East England base. It now has 31 outlets.
Raleigh Rolls On
2008 was the breakthrough year for Raleigh UK’s three year old retail franchise package, Cyclelife. This has the potential to rebuild the Raleigh brand via a growing network of dealers. In February, Raleigh became a member of the British Franchise Association. By April Raleigh had signed up its 100th member.
Cyclelife dealers get preferential trading terms from Raleigh, stock finance, store development consultancy and finance, and operational and finance support for marketing activity. Raleigh’s aim is to develop a network of 200+ Cyclelife dealers.
Healthy Halfords
Sales of satnavs and bikes enabled Halfords to havea relatively good 2008. Relative, that is, to much of the rest of retail. The High Street had a rough year on the whole and Halfords managed to grow - albeit only slightly - in tough operating conditions.
The year started with the high-profile sponsorship of Team Halfords Bikehut, built around Olympic hopeful Nicole Cooke. She later won gold in the women’s road race but by year end she had to found her own team when Team Halfords Bikehut switched its emphasis to male cyclists only.