According to the NBDA’s 2015 Specialty Bicycle Retail Survey, the average bike store is now larger in both dollar volume (over $1 million per year, an all-time high), and physical size (6,461 square feet), than ever before. They are also improving in sales efficiency, with average sales of $185 per square foot, a record high for these surveys, and an increase of 3% from the previous year.
While there continue to be huge challenges, the IBD channel itself was apparently churning along fairly well in 2014. IBDs were responsible for $4.7 billion in retail sales last year, including used bikes, approximately 63% of the retail dollars spent on cycling in the United States. This reinforces the notion that while many are certainly fighting for their business lives, a lot of them are fighting successfully. Over half reported that their sales were up in 2014.
What are some of the challenges they are facing? Competition from the Internet was at the top of the list, with 72% of the retailers noting it as an issue. Competition from mail order was cited by just over half, Continue reading “Survey Shows Rising Dealer Metrics in a Flat Market”