Do you believe 2013 will see the post Olympic bounce that we might have had in 2012 were it not for the weather?
2012 was great for me, I’m excited for 2013 ............13.3% 2013 will be bad, the economy is tough......................10.2% I’ll take it as it comes ..........................................................44.9% I am determined to grow my business next year ....39.8%
In the past 12 months have you increased online trade?
Decreased online trade ..........................6.6% No change ................................................36.3% Grown it slightly ....................................34.1% Grown it significantly ..........................12.1% Double or more the volume YOY ......1.1% Only just started out online ................9.9%
The analogy “do more people buy more cars when the Formula One is on” seems apt here. The Olympics did plenty to boost morale and respect for cycling, but a sales spike doesn’t seem to have materialised. A slow burner perhaps?
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If you turn a profit this year, what percentage will you channel back into the business?
1% to 10% ..............................................17.3% 10% to 30% ............................................32.7% 30% to 50% ..............................................9.2% 50% to 75% ..............................................9.2% 75% to 99% ..............................................5.1% All profit ....................................................26.5%
The figures don’t paint a picture of decline, suggesting retailers are trying their best to go toe-to-toe with the online giants. BikeBiz has noted many independent’s sites promoting price matching in order to retain customers.
In the past year, which sectors have shown a marked increase in sales and demand?
Mountain bikes hardtail............................10.5% Mountain bikes full suspension................7.4% Leisure and hybrid ......................................50.5% Time trial ..........................................................9.5% Recumbent ......................................................1.1% Cargo Bikes ......................................................2.1% Custom made to order, tailor fitted .. 12.6% Cyclocross......................................................20.0%
No surprises here, road and everyday bikes continue to drive the trends. We would have expected greater demand for fitted and tailor-made builds, which if coverage online is to be believed, is surging in popularity. Not every shop can offer such services, though.
What impact do you believe the Lance Armstrong and wider doping scandal will have on cycling?
Negative impact for all cycling ........25.5% Negative for Armstrong’s associated brands ..................................21.4% Any news is good news..........................7.1% No impact at all ....................................52.0%
Very much an all or nothing picture painted by our feedback, with few retailers commiting to fresh investments. We’d imagine that any profit turned will be ‘stored fat’ for a tougher year anticipated in 2013.
What will you spend any investment in the business on?
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Store security......................................................7.2% Staff wage or hiring ......................................18.6% New store..........................................................10.3% Developing online trade ..............................35.1% Expanding stock levels..................................30.9% Paying off loans or supplier debts............24.7% Store vehicles ..................................................11.3% Marketing ..........................................................36.1% Redecoration or point of sale ....................30.9% Workshop renovation or tooling ..............28.9% Bike fitting training or equipment ..........16.5%
This multiple choice question depicts what retailers see as important to their survival going forwards and interestingly, marketing the business and developing an online presence comes out top of the pile. Loyal local custom no longer enough, we wonder?
Armstrong continues to divide opinion online, but encouragingly more than half of our trade survey points to the scandal having no effect on cycling and people’s attitudes to cyclists going forwards.
Which of the following have caused your business concern in the past 12 months?
Saving the real debate until last, we’ll let you analyse this one. These are the challenges to be faced daily in 2013.
Rent Rises ................................................................10.2% Suppliers selling out of key lines ....................54.1% Price rises on complete bikes..............................8.2% Price rises on everything else ..........................25.5% Online competition ............................................71.4% Supermarket or chain store competition ....22.4% Disposing of waste..................................................7.1% Grey import discounting and Foreign competition ..........................................36.7% Courier charges or inflexibility ........................11.2% Banks refusing loans ..............................................7.1% The state of the economy ................................46.9% Lack of trained/quality staff to hire ..............12.2% Theft from the business........................................3.1%