BikeBiz

Interesting...but can you explain: "Card giant VISA has revealed that bicycle shops, including sales and services, enjoyed a 6.3 per cent rise in spending week-on-week to July 22nd, in the run up to Bradley Wiggins and Team Sky's victory (which was looking increasingly likely in the run up to Sunday). Spending rose to 5.1 per cent year-on-year."? I understand that VISA are reporting a 6.3% volume increase in VISA transactions in businesses that they have categorised as cycles on their account records w/e 22/7...I think? But what does 'spending rose to 5.1% year-on-year mean? Does this mean year to date VISA figures for cycle businesses is running at 5.1% and therefore last week's figure was a negligibe increase or what does it refer to? As VISA may have increased their penetration in cycle businesses over the year or overall market share the 6.3% figure isn't comparable and doesn't appear to tell us a lot, but of course any data is of interest in the current economy. However, I think its mis-leading to link transaction data solely to sports events in a week that saw the start of summer holidays, widespread preparation for increased staycations AND the first real sun of the summer. Feedback in general and particularly on the industry forum suggests that there's lots of people looking at bikes (again - schools hols, kids & dad's off & sun shining), but many less buying.

For sure, whether the increase is down to Wiggins is a moot point - it's a bit of a 'perfect storm' with the sun emerging from the rain clouds, summer hols, etc. To my understanding that is right that VISA has reported in a 6.3% week-on-week increase in transactions in what it calls bike shops week ending 22th July. The 5.1 per cent year-on-year figure is week 29 2012 compared with week 29 2012. The 6.3% figure is week 29 2012 compared with week 28 2012. Does that answer your question? I've got the actual figures somewhere in my inbox which I'll add to the story if I can find them. I don't think ActSmart were that specific with the numbers in their story about bike shop searches, incidentally.

Try again: The 5.1 per cent year-on-year figure is week 29 2012 compared with week 29 2011 (not 2012 as I mentioned before). Doh!

Thanks Jonathon, so VISA bike business transactions grew by 5.1% w/e 22/7 vs same week last year (but this could be an ongoing trend re market share, business mix etc), but only uplifted by 6.3% w/e 22/7 vs w/e 15/7, despite the weather, school holidays & the tour etc? I'd say that was a very disappointing uplift in what would historically have been the biggest trading week of the year for the majority of independents. Not trying to pick holes, just like to fully understand the impact when we rarely see data and this certainly supports the poor feedback I'm hearing. Interestingly, in a recent excellent presentation by the Australian Cycling fund they identified that their historic sports cycling successes had no real impact upon cycling participation. It must have some impact upon the psyche, but conversion to partcipation and more importantly sales transactions is very difficult to prove...now the weather, that has been proven. I looked up the ActSmart news item you refer to and they quote "visits to the Cycling Experts website on Monday up 38% compared to average daily visitation figures" doesn't quote if that's average for time of year or annual, but does state "highest daily visitation since the website was launched", which I'm guessing is pretty spectacular for a Monday and the fact that 75% of visitors to the site looked for their local bike shop is a huge figure that suggests interest in purchasing, given that I'm told Jobs and Cytech are usually 2 of the largest drivers of traffic. But then again The Cycling Experts is the shop search for a number of leading sites including British Cycling, so that may have influenced the traffic to be more purchaser driven than other site visitation?

Not at all to your comment about picking holes. I agree that the data isn't entirely robust, but this kind of picks up on the point that we just don't have enough decent accurate sales data in the trade (yes, that topic again!). It's hard to quantify if Wiggins, London 2012, etc, have a direct impact on sales. But I do think it's hard to dismiss the fact they raise the public consciousness of cycling (like Boris Bikes too I suppose) and that somewhere down the line that can translate to sales I'm sure, but I don't think there's a formula that says 'Wiggins win = x amount of sales', it's hard to quantify and the effects may be much further down the line. Re the more immediate atmosphere we hear conflicting reports on sales as usual, but times are hard for many many consumers out there and that combined with 2 months+ of rain is going to take a toll on sales, doubtless.

Converting consciousness to sales is the key, but almost impossible when unpredictable weather is THE major influence on the industry. Better prepared and assured(?)sports success is slightly easier to plan for, but it can all go wrong, the real commercial benefits are under question (though the australian feedback was very valuable) and anyway it can rain on the results and kill any commercial benefit. What's most important is the underlying trend and before anymore media start hyping the 'bicycle boom' we should be clear that like most other big ticket, considered purchase markets, it's been a crap year!

It's nice to see the mainstream media saying good things about the industry, but the 'bike boom' may be slightly talked up - but then we're back to the need for accurate sales stats… I'm interested in what you think about the British Cycling/London School of Economics stats from last year - was that talk of a growing cycle market wrong, or has it gone downhill since then?

Problem is differing research looking at different data each time. Usage and business are two separate subjects and although linked they are clearly not integral. I did think some of it seemed somewhat excessive, as did some areas of the Allegra report (whatever happened to them - no money in cycle research?). All that has happened in recent years is that the very poor and understated research of yesteryears (including from the large corporate) has been replaced by more realistic data re market size, but there is no quality data re retail market movement and the fact is the past couple of years at least have been poor for overall bicycle sales, especially if you consider the impact of c2w, increased exposure, increasing retailer nos, huge increase in UK population. What has clearly increased is usage by a small, but gradually growing group of cyclists.

Maybe this will add hope for some of the independents who are still struggling with sales... IMBA-UK was recently contacted by TV production company Optomen who are looking to find an IBD to star in an episode of their new show, more details can be seen below: ARE YOU AN INDEPENDENT BIKE SHOP THAT NEEDS HELP? A brand new expert-led series for Channel 4 is going to show independent businesses how to improve profits and build a stronger customer base. If your business is struggling to survive or expand, we want to hear from you. As part of this programme the successful applicant will receive advice and guidance from one of the UK’s Leading Consumer-facing Business Experts to help you give customers great value-for-money and increase your profits. If you own the company and want to apply to be involved: Please e-mail business@optomen.com or call 0203 227 5980