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Retailers' crystal ball: We ask IBDs their projections for 2021

Published January 12, 2021
Today: Hal Honeyman of The Bike Rack, St. Charles, Illinois.

BOULDER, Colo. (BRAIN) — As this unforgettable year comes to end, retailers are eager for a little off-season rest, but anxious about the prospects for 2021. Will they have enough supply? Enough workers? Will a soft economy or COVID-19 lockdowns curb demand, or has everyone who ever wanted a bike already got one? 

For a feature in our December magazine, we touched base with 16 retailers to get their take on the 2020 season and their predictions for 2021. We'll be sharing snapshots from those interviews online over the next two weeks.

Hal Honeyman, The Bike Rack, St. Charles, Ill.

We are on track to finish the season $1 million ahead of last year. Margins have dropped by 2.6%. I attribute that to the labor percentage being smaller relative to overall sales. The current model of selling bikes on backorder has also hurt add-on sales.

Consumer demand for 2021 will continue to be strong. I do worry about consumers getting frustrated with the whole backorder situation. Especially if projected dates get pushed out farther which seems to be happening with some models of bikes. My better half Julie ordered big early on. I said, “What the heck are you thinking?” But clearly she nailed it.

Our pre-seasons are up 30% over last year. We have been buying parts and accessories when they are available. Our bike storage space is now filled with tires, tubes, and popular add-on accessories. We will be in good shape if there are supply interruptions.

We will keep staff levels similar to 2020. We had a huge increase in sales with a slight bump in labor. Next year we want to keep doing more sales without adding labor expense.



Hal Honeyman, The Bike Rack, St. Charles, Ill.
Topics associated with this article: Crystal Ball

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