Currency fluctuations were a defining factor of the year, says cycle industry - BikeBiz

Currency fluctuations were a defining factor of the year, says cycle industry

The cycle trade looks back on its 2009 highlights and lowlights
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The weakness of the pound was one of the defining features of 2009, according to the UK cycle industry.

This month BikeBiz asked the trade for its thoughts on the positives and negatives of the year and found that the tough currency rate featured prominently.

Brompton's William Butler Adams told BikeBiz: "The weakness of the pound has also been detrimental to our gross margins. It has really hit profitability hard.

"Historically, the exchange rate has only seen gradual shifts. Having it fluctuate so wildly has meant re-evaluating prices and stock levels on a much more regular basis. Before now, there has only been one year in our history where prices have shifted more than once per annum,” he added.

Madison MD Dominic Langan also cited the weak pound as a definiing factor of 2009: “The year has been challenging and not in traditional ways, but in completely new ways. The rapid pace at which the pound weakened created issues we have never had to face before as a management team. There was no history to look back on and no way of knowing how it would affect customers, products and performance."

For more opinion from the cycle industry, head to the Interviews and Features section here.

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