DISTRIBUTOR
“BEING DOWN AND NOT WITHOUT REASON, CONSUMER CONFIDENCE IS VERY LOW.”
to normal following the Covid boom in cycling. Low stock levels are beginning to level out and Madison’s stock is now almost back to pre-pandemic levels, with the exception of some key lines, while supply issues are ongoing on the bike distribution front, under the Sportline business. Langan said that the low stock levels on bikes are in-part
due to Sportline’s reluctance to compromise on specification, as the brand wants to avoid causing issues for retailers and ensure a high standard of aftersale service. “We are running pretty much in line with budget so far this year and ahead of 2019 with the IBD channel running quite considerably ahead of where they were in the year prior to the pandemic breaking out. But we are simply no longer seeing the demand we enjoyed back in 2020 and 2021. “As a country, we are still facing quite some challenges with
low consumer confidence, rising inflation, the increasing cost of living, a weakening GBP, the war in Ukraine, increasing costs, labour shortages, the spread of industrial action/ disputes and a Government in total disarray at a time when we really need strong credible leadership.” Langan said his main concern is that these challenges could continue or even get worse in the coming months. While the cycle industry often thrives during economic
downturns, as people turn to the bike to try and cut costs, working from home could prove to be a barrier to the success of the cycle industry during the next year.
The retailer view Despite all the uncertainty facing industry at this turning point, independent retail remains robust, Langan said, especially when compared to the first half of 2019 - the last ‘normal’ time we have for comparison. “Many stores are reporting being overstocked and we know some suppliers forced retailers to take stock they no longer had the demand for when they initially ordered it. We did not do that at Madison or Sportline as we are keen not erode the value of inventory supplied by us through forcing retailers to promote heavily just to generate cashflow.” The performance, or enthusiast, cycling market remains
strong, as Madison has already pre-sold the first of the newly announced Shimano 105 Di2 groupsets, but the leisure and commuter market appear to have slowed. Langan added: “Footfall across retail is widely reported as being down and not without reason, consumer confidence is very low. Shops are well stocked but the demand is simply no longer at the levels enjoyed over the last two years and inventories will take some time to balance out again. We are seeing retailers investing in their stores, but especially in their
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Smartphone mount brand Quadlock has recently returned to Madison
workshops through investing in new Park Tools and our tool boards, the CRC Smartwasher parts cleaners coupled with our very competitive consumables subscription service and not forgetting the Asecos cabinets for safe e-bike battery storage and handling.”
Product and portfolio Madison has made a number of product changes in its portfolio recently, including the addition of Tooo rear camera light. Quadlock, a leader in smartphone mounts, has also rejoined
the brand portfolio, and during the pandemic Madison launched Vittoria tyres, offering a better margin than some other tyre brands. ODI, specialist in bike grips, was announced in 2020 as a
Madison brand, offering an add-on accessory with low stock investment, and varied POS. During the pandemic, Madison invested in a Holland
Mechanics wheel-building set-up for the M:Part wheel range. Finally in March, Lazer announced its new Kineticore
rotational impact protection technology for helmets, offering protection, ventilation, and lower wait. Langan added: “We continue to look for opportunities in the market and gaps within our portfolio to ensure we offer everything our customers need to meet the demands of the consumer.”
Room to grow Following on from the opportunities of the pandemic, Madison has plans to continue growing both in its exports and in behind-the-scenes infrastructure. Despite the difficulties imposed on international business by Brexit, Madison continues to see growth in exports, and improving its service levels for the EU are a priority, said Langan.
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