BikeBiz, in association with Cycling Sports Group UK, calls on independent retailers to share their feedback on the year’s trading, concerns and aspirations for the future. Mark Sutton gathers 99 individual responses from the front line in another revealing insight into the specialist business...
By what percentage have your annual profits increased or decline year on year?
up 50% or more........................................3.0% up 30% to 50% ......................................5.1% up 10% to 30% ....................................37.4% Barely changed........................................38.4% down 10% to 20% ..............................15.2% down 30% to 50% ..................................1.0% down 50% or more ....................................0%
Though erring towards the side of a positive uplift, it does seem that few retailers have been able to grow year-on-year, painting a stagnant picture of the independent trade. But why? Read on for more on why retailers feel growth hard to force.
What portion of sales do Cycle To Work sales represent?
What figure best fits your annual takings on cycle clothing, footwear and accessories at retail value?
£0 to £1,000............................................12.1% £1,000 to £5,000......................................6.1% £5,000 to £10,000 ..................................8.1% £10,000 to £20,000..............................12.1% £20,000 to £40,000..............................17.2% £40,000 to £60,000..............................11.1% £60,000 to £85,000..............................10.1% £100,000 plus..........................................23.2%
It’s perhaps surprising to see clothing and footwear sales so strong via independent channels, especially with competition online often cutting into margins. Nonetheless the vast majority are doing at least £20,000 annually, if not much more here.
If you’ve made cutbacks this year, where have they been?
No C2W Business ..................................27.6% Between 1% and 15%............................0.0% Between 15% and 30% ......................49.0% Between 30% and 45% ......................21.4% 50% or more ..............................................2.0% All business ....................................................0%
Compared to last year’s analysis, we’re actually seeing substantial growth in cycle to work sales, not something we’d expected to see given the VAT rule changes. Last year 52.6 per cent of respondents fell into the one to 15 per cent bracket.
Are you selling more or less bikes on finance than last year?
Staff numbers, pay and hours ................23.8% Utility bills......................................................31.3% Cheaper courier options............................21.3% Stock levels ....................................................63.8% Overheads or premises move ................16.3% Investment in tooling, EPOS or other..13.8%
Suppliers take note, retailers are struggling with the number of SKUs on some product and stock levels have logically been the primary cutback in a year overshadowed by poor weather. With utility rises coming in, it’ll be worth reviewing suppliers in the new year.
Would you say the workshop is more or less important to the business than last year?
Around the same....................................61.0% More............................................................28.0% Less..............................................................11.0%
More............................................................53.6% Less ................................................................2.1% The same importance ..........................44.3%
The general trend here is that finance is slowly becoming a more popular method to secure a bike sale, and why not? Finance remains a good method to encourage the customer to invest a little more hard earned in their purchase…
10 BIKEBIZ DECEMBER
As conclusive as the stats come, the trade is in agreement that the workshop is an essential part of the business and largely growing in importance. Of all the retail visits BikeBiz has made we can’t recall ever seeing an idle mechanic.