UK Survey: Sales 4 Million Bikes, But Halfords Reports Decline
Like most other North European countries, bike sales in the UK in the first half of 2010 were slow due to extreme winter weather. Also Halfords UK reports a dip in bicycle sales in the companys pre-close statement for
LONDON, UK – Like most other North European countries, bike sales in the UK in the first half of 2010 were slow due to extreme winter weather. Also Halfords UK reports a dip in bicycle sales in the company’s pre-close statement for the second quarter and first half year of 2010.
The UK’s largest bicycle retailer blamed the like-for-like sales decline of one per cent on particularly strong comparatives, delays in the availability of new cycle ranges and increased price competition. However Halfords could also report a rise in sales of Boardman bikes by 40%.
Contrary to Halfords slow down in sales, a market report by management consultancy Allegra Strategies reveals that the UK market for bicycles will reach an estimated 4 million units for the first time in 2010. According to Allegra Strategies total sales for bicycles and cycling goods will exceed GBP 2.1 billion (2.4 billion euro) in 2010. The report also claims that the market in the UK is three times larger than previous estimates and also growing very rapidly, in part due to the rapidly rising average spend on both bikes and cycling accessories.
An important development is the rise in the number of those new-to-cycling, many of whom are women and, indeed, the rapid growth of cycling ‘enthusiasts’; who are prepared to spend unprecedented amounts, with many cyclists owning multiple bikes and the appropriate apparel. Sales are also pushed up by the public investment programmes and government initiatives in rental bikes and tax scheme.
For the next few years Allegra predicts substantial further growth of the cycling sector to well above GBP 3 billion (3.4 billion euro) in consumer spending by 2015. The London Olympics in 2012 will provide a further boost the popularity of cycling, as will the increasing uptake of eco-friendly, battery powered E-bikes, which already make up an estimated market of 30,000 per year and growing.
The survey was conducted among 18,000 consumers and more than 200 senior industry executives.