opening a bike shop?

We are regularly contacted by people who are setting up their own specialist bike shop, seeking advice and support.

Read the overview below and then refer to the links on the left to discover more about each of the key topic areas.

Overview:

• There are approximately 2000 specialist cycle retailers in the UK & Ireland. Excludes Halfords, supermarkets etc
• Market turnover is approximately £750 - £900m annually, but exact figures are almost impossible to produce
• Specialist retailers represent approximately 40 - 45% of market turnover, whilst Halfords has a similar share, catalogue retailers 8% and other retailers such as supermarkets 12%.(Source: ACT Census 2002)
• 2002 bike sales in the UK were worth £974m (Source: Mintel)
• Estimates suggest approximately 2.5m - 3m bikes are sold in the UK annually

The sector is highly diverse encompassing retailers of all shapes and sizes. Retailers can be split into a number of different categories, the most common being:

• Family / leisure - low to middle priced bikes for adults and children
• Specialist shops - mtb, road, touring or recumbent primarily for enthusiasts and regular commuters / leisure riders
  
• Hire shops / centres - some retailing involved but mostly cycle hire and often part of or near, holiday centres and national parks etc.

The rewards:

The potential rewards from running your own bike shop can be great.

The opportunity to be your own boss making a living from something you are passionate about is immeasurable. Becoming a positive part of your local community whilst working with exciting new products and providing expert advice and knowledge are some of the other rewards you can gain from your new business.

Cycling is currently a "hot topic" on the political and social agenda, and increasingly promoted as a healthy, fun and cost-effective way to improve well-being and support the environment for all age groups. MTB and road are also gaining increasing profile and investment. This helps position cycle retailers as important locally based specialists - destination retailers - able to help people make the most of bikes and cycling.

The Government are increasingly investing in and supporting the development and promotion of cycling both nationally and locally through a variety of projects and initiatives, which include creating more cycle routes (Sustrans), creating a number of Cycling Demonstration Towns, as well as educating school children about cycling skills, providing tax incentives to employers to promote cycle usage, and investing in a national celebration of cycling - Bike Week - to prompt more people to cycle.

The reality:

There is a popular saying in the industry which goes something like this: "If you want to make a small fortune in the cycle trade, start with a large one."

Being passionate about bikes and cycling alone won't make you a successful independent cycle retailer. In the 21st Century shop owners need a good business brain to match their enthusiasm for the product and lifestyle.

There's also the hard-work and long hours associated with running your own retail business - which may well include everything from sweeping the floors and stocking the shelves, to maintaining your own website, managing the finances and training new staff.

Today bicycles are seen by many people as another price-driven commodity sold by supermarkets, non-specialist retailers and mail order providers. This means that specialiasts are under more pressure than ever before and are working harder to demonstrate their unique value to customers who very often "just don't get it".

Many consumers believe a £79.95 bike is a bargain and taking it away in a box just adds to the convenience; the skills necessary to build and maintain a cycle are often neglected. Large corporate chains have the marketing muscle to get their brand name into the majority of consumer minds and the buying power to get the best prices with the resources to ensure it all runs smoothly.

Combine these commercial pressures with the seasonal nature of the market - a wet summer isn't good for cycle sales - plus the ongoing demands of running a small retail business in an industry with typically low profit margins; and what seemed like a great idea in the pub doesn't feel quite so much fun now the reality has kicked in!

But don't despair..

The Way Forward:

Unfortunately we can't offer you a simple solution to make your new cycle shop a success, but we can help highlight some important areas for consideration.

What we can also say for sure is that modern cycle retailers must integrate their passion with some good straightforward business sense and an innovative approach to developing a niche retail business. In today's competitive market specialist retailers cannot compete on price alone - but if you're clever you can make your strengths work to your advantage.

Specialists have a lot to offer - good quality product, a commitment to great customer service and that personal touch which big corporate retailers just can't offer, plus local involvement and specialist skills. Effectively employing all of these can give you an edge over the competition and help you win and keep customers.

Use the links at the top left of the page to find out more.