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Suppliers are already suggesting Covid could continue to disrupt supply chains well into 2022 and 2023 so don’t expect the problems we have all seen in 2020 and 2021 to ease up any time soon. Forward ordering with the balance sheet to fund inventory purchases looks like being the new normal, at least for now.
Omnichannel and personalised service Covid has certainly accelerated a shift to online sales. According to EConsultancy, a digital marketing consultancy, a report by Eversheds Sutherland suggests online sales of clothing rocketed by £2.7 billion during the pandemic, whilst total sales fell by £9.6 billion. As a result, they say the dramatic shift to e-commerce in
this category means online clothes shopping could overtake in-store purchases as soon as 2022, ahead of previous expectations that it would happen in 2025, making Britain the first European nation where the majority of clothing is bought from online sources. Cycle retailing has also seen a shift to an omnichannel
strategy with some retailers seeking to differentiate themselves further with highly personalised service offerings. For example, at Criterium Cycles, we have implemented a popular personal home delivery service using our own vans with our own staff, free for any bike £1,500 or more. Bike shops that do not offer a digital store that looks and feels like their bricks and mortar store and with a seamless service offering may find themselves under increasing pressure from those that do.
Consolidation Does this point to further consolidation in 2022? Frasers Group acquired Evans in 2018 and we have recently seen JD Sports Plc acquiring first Wheelbase then Leisure Lakes, to add to the specialist cycle retailing business of Alpine Bikes it already owned through Tiso Outdoor. Nevertheless, it is still possible for smaller retailers to
innovate and disrupt markets without the need for massive scale so it will be interesting to see if the consolidation theme continues in 2022 and what it means for the hundreds of small cycle retailers in the UK. What is clear though is that smaller retailers will have to adapt to changing consumer demands to thrive.
E-bike popularity One strong trend that is surely set to continue is the continued rise in e-bike popularity. According to the Bicycle Association, e-bike volume remains strong, up
48 | January 2022
www.bikebiz.com
+59% vs 2019 but crucially up +37% vs 2020. E-bikes are especially popular with those concerned about climate change generally and looking to switch to a more sustainable mode of transport. It is vital that the cycle sector as a whole (retailers and
suppliers) continue to lobby hard through trade associations and any channel possible for local authorities and governments, devolved or otherwise, to maintain their commitment to invest in cycle friendly infrastructure. The Spaces for People initiative in Scotland offered funding and support to make it safer for people who chose to walk or cycle for essential trips and exercise during the Covid-19 pandemic. Sadly, in Edinburgh at least, most of those temporary
measures are now being removed yet it is vital to build, not remove, cycle friendly infrastructure if we are genuinely serious about delivering a net zero carbon agenda.
Return to normality This year was remarkable for cycle retailers and 2022 looks set to be similarly so, but with key differences. We should see a gradual return to normality (with
inevitable bumps along the way) with the lockdown fuelled demand increase for bikes settling down. But that is not a reason to be downhearted. Cycling can maintain its role as a leading contributor to
achieving a net zero carbon strategy and e-bikes will continue to grow in popularity. However, consumers are becoming far more demanding in terms of service and a personalised approach. An omnichannel approach is increasingly the norm so
smaller retailers must learn to adapt and innovate – otherwise the excitement generated by the last 18 months could start to disappear for some. n
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