Bike Stocks Rising in Europe
DOETINCHEM, the Netherlands – Numerous signs are indicating that the number of bicycles that are in stock throughout Europe have reached higher than normal levels. This holds especially true for regular and sports bikes; e-bikes sales continue to grow and are in some countries even breaking records.
Shimano as well as Accell Group pointed to such higher stocks in Europe in their financial half year 2016 reports which were recently published. Shimano reported a big 18.6% decline in net sales of bicycle components in the first half of 2016 compared with the same period in the previous year.
‘Undermined retail sales’
Shimano blames bad weather in March and April for the big drop in sales of bicycle components which, “Greatly undermined retail sales of bicycles in Europe,” said the Japanese parts maker. Shimano indicated further that this resulted in, “higher level of distributor inventories.”
Accell Group issued a similar statement in their 2016 half year report. René Takens, Chairman of the Board of Directors of Accell Group stated, “The market conditions for the specialist retail sector were not particularly easy in the first six months of this year, as weather conditions in particular had a negative impact on bicycle sales in many countries.
Despite these unfavourable conditions, we have recorded strong organic growth in the first half of 2016, largely driven by higher sales of electric bikes. We are benefitting specifically from our leading position in the field of electric bikes, which currently account for some 43% of our total turnover. Turnover from E-performance bikes has doubled in the last six months.”
Discounts & price promotions
In its outlook for the financial results in the second half of 2016 Accell Group one again points to high stock levels as it says, “Full year result could be affected by discounts that may be necessary if inventories are still higher than average in September due to continued bad summer weather.”
Shimano and Accell are obviously not the only ones wrestling with what comes with rising stocks. It’s expected that more suppliers and manufacturers have to turn to price promotions this fall.