Over the past few years, bicycle shops across the nation have experienced a rollercoaster ride, much like the famous Tour de France. The COVID-19 pandemic initially brought about a huge surge in bike sales, with shops selling 100 or more bikes in just a couple of days. In 2020, bike sales skyrocketed by 64% to $5.4 billion, according to Circana, a retail tracking service.
However, this boom was short-lived. Bicycle shops struggled to restock their inventory due to pandemic-related supply chain issues. Now that inventory has caught up, fewer people are in need of new bikes. As a result, bicycle manufacturers have been cutting prices to clear out the excess stock, creating a challenging environment for retailers.
Stephen Frothingham, editor-in-chief of Bicycle Retailer & Industry News, explained, “The industry had a hard time keeping up with the demand for a couple of years, but then demand slowed as the lockdowns ended, and then a lot of inventory started showing up.”
The impact of the pandemic has been uneven across the industry, with national retailers like REI and Scheels recovering faster than independent bike stores. For example, John McDonell, owner of Market Street Cycles in San Francisco, has seen a significant drop in the number of bikes passing by his shop due to the shift to hybrid work.
Independent bike stores are also facing increased competition from national chains and bike manufacturers like Specialized and Trek, who are buying up bike shops and selling directly to consumers. This development has forced some shop owners, like McDonell, to cut down on staff and consider closing their stores when their leases expire.
On the other hand, some bike shops, like University Bicycles in Boulder, Colorado, have fared better due to their location in popular cycling destinations. Owner Douglas Emerson has seen a return to 2019 sales numbers, thanks to continued demand for e-bikes, children’s bikes, and the growing popularity of gravel bikes.
Shawna Williams, owner of Free Range Cycles in Seattle, Washington, adapted to the challenges by focusing on repair and maintenance services to offset lower bike sales. This strategy has helped her maintain steady sales throughout the pandemic.
As the bicycle industry continues to navigate the twists and turns of the post-pandemic world, retailers must remain adaptable and find ways to attract and retain customers for the long haul.
The Associated Press contributed to this article.