BOULDER, CO (BRAIN)—Sales of bikes and accessories neared $3 billion ($2.934 billion) at independent bicycle dealers last year, according to a recently concluded phone survey by the Leisure Trends Group, a market research firm based in Boulder, Colorado.
Leisure Trends surveyed 420 shops nationwide for its first-ever distribution study, which aims to provide a picture of the industry’s size and structure in the U.S. On average, each phone interview was just under 20 minutes. Based on the survey, Leisure Trends then projected findings to approximate size and scope of the market.
Other preliminary findings from the survey:
—On average, a bicycle dealer’s annual sales were $690,000 in 2008, with significant variation in each of the five census regions
—On average, a bicycle retailer sold 566 new bikes in 2008, for a total of 2.4 million bikes sold through the specialty bike dealer channel
—New bikes represented 42.2 percent of the dollars for an average IBD store
Though a similar report is currently assembled by Jay Townley of the Gluskin Townley Group, Cooper said LTG’s study was a necessary step in its efforts to establish a baseline for its upcoming retail sales capture program.
“This distribution study had to be completed to launch our retail tracking service,” said Charlie Cooper, sales manager at Leisure Trends. “It established the scope of the industry. Now that this is complete, we will be able to release data down to brand and individual styles that are selling for June 2009.”
The complete report will become available to retailers that participated in the survey, as well as manufacturers who would like to purchase it, in mid-June, Cooper said.
The report, which will cost $12,500, will include a section on market structure that outlines the size of the industry by category, region, state and various channels. It also will cover brand penetration for all major brands by category and a section on retailer attitudes, pay structure and the importance of all categories among other metrics in an IBD store.
Cooper said Leisure Trends will sell the report as part of a package to manufacturers that subscribe to its retail tracking data service.
Leisure Trends has been tracking and benchmarking retail sell-through in several industries including snow sports, outdoor, running and apparel since 1992.