Record sales in July
11 Aug 2009

July sales increased by 1% on June, making July the highest volume sales month for specialist retailers in at least the past 2 years.

In recent years we have seen the peak sales in May and June, but the trend for UK based holidays appears to have boosted bike shop sales in July and especially for leisure orientated products.

July 2009 sales increased by 5.8% on July 2008 making it the most buoyant month since April. Like for like core sales growth year to date now stands at 4.7%.

This growth has been achieved despite a significant reduction in bicycle imports year to date and a related overall reduction or flat growth in ‘bicycle' unit sales, reflecting the buoyancy of the parts, accessory and repair markets.

August sales volumes in 2008 reduced by 11% on July before resurging in September, but there is a strong feeling that August 2009 will also be impacted by the UK holiday market, further increasing the overall 2009 growth trend.

However, there remains an ongoing separation in the market with 23% of retailers reporting a sales growth in excess of 20% in July, whilst 17% reported a sales shortfall in excess of 20% in the month.

July fact file

July like for like core sales increased 5.8% vs. 2008 (June 2.2%; May -7.1%; April 19.4%)
23% of retailers reported sales UP by more than 20% in July 09 vs. 08 (June 26%; May 19%; April 51%)
15% of retailers reported sales UP by between 10% - 20% in July 09 vs. 08 (June 16%; May 10%; April 12%)
15% of retailers reported sales UP by between 1% - 10% in July 09 vs. 08 (June 16%; May 12%; April 10%)
17% of retailers reported sales DOWN by between 1% - 10% in July 09 vs. 08 (June 15%; May 15%; April 8%)
13% of retailers reported sales DOWN by between 10% - 20% in July 09 vs. 08 (June 13%; May 15%; April 9%)
17% of retailers reported sales DOWN by more than 20% in July 09 vs. 08 (June 14%; May 29%; April 10%)
The overall increase in the growing businesses was 26.2% vs. July 08 (June 22.8%; May 22.8%; April 36.5%)
The overall decrease in the shrinking businesses was -17.7% vs. July 08 (June -17.6%; May -24.1%; April -20%)

The trend between performing and non-performing businesses is now consistent and suggests that c20% of the market is under threat of survival.

The worst performing 17% of retailers in July reported a combined sales shortfall of -34% in July, whilst the top 23% of performers reported a combined growth of 52% in the month. The 23% of top performers contributed 31% of the total reported sales volumes.
.
The Wider Picture

2009 year to date like for like core sales growth is 4.7%
Last 3 months sales growth is 0.4%
Quarter 1 2009 like for like sales growth was 5.8%
Quarter 2 2009 like for like sales growth was 3.7%
Cumulative sales growth since the economic downturn in September 2008 stands at 4.4%

What next

Let us know how can we help you to develop your business. Check out all of the benefits available to all ACT/ActSmart members to reduce costs, increase promotion and save time. See the quick links menu below.

Performance figures detailed herein were derived from over 280 independent cycle retail businesses and workshops throughout the UK, ranging in size from annual turnovers of £50k to £2.5m, representing c 330 shop fronts. The performance figures apply to core like for like retail sales only; they do not include sales achieved via retail finance, cycle to work schemes or other non-core sales transactions, which will increase growth rates accordingly. No internet/mail order only businesses participated in this research.