The UK cycling industry has undergone dramatic transformation over the past decade, facing a perfect storm of challenges including Brexit, the COVID-19 pandemic, and significant shifts in retail dynamics. What was once a thriving sector has been fundamentally reshaped by macroeconomic forces and changing consumer behaviors.

Brexit: The End of the UK as a Cycling Retail Powerhouse

Brexit marked a turning point for the UK cycling industry. Prior to leaving the EU, the UK positioned itself as a global retail strongpoint for cycling goods, with companies like Wiggle Chain Reaction Cycles dominating the European market. Post-Brexit, this advantage evaporated almost overnight.

The implementation of new tariffs and duties created a complex and costly trading environment. Many products now face “double duty” – being taxed both when entering the EU and again when entering the UK. This has made it increasingly difficult for UK retailers to compete with European Suggested Retail Prices (SRPs), especially as cycling brands have become more globally oriented with standardized pricing strategies.

Ironically, while UK businesses struggle to export, individual consumers find it easier to import directly, often bypassing duties through various means. This has created an uneven playing field where UK retailers face higher costs while competing against direct imports and European retailers targeting the UK market.

Industry Consolidation and Casualties

The challenging environment has led to significant industry consolidation:

• The loss of key accounts, including Wiggle Chain Reaction Cycles (WCRC), which was once the biggest player in the market
• Approximately nine distributors have ceased operations in just the last two years
• The UK market has become a “dumping ground” for products, actively targeted by grey exporters and EU retailers looking to offload inventory

COVID-19: Temporary Boom Followed by Bust

The COVID-19 pandemic initially created an unprecedented boom for cycling. Lockdowns prompted people to seek outdoor activities and alternative transportation methods, leading to a surge in bicycle and accessory sales. However, this boom proved temporary, with the industry now facing significant challenges:

• Oversupply issues as retailers and manufacturers ramped up production during COVID, resulting in excess inventory
• Inflation driving up prices dramatically, particularly for bicycles
• Cost-of-living challenges forcing consumers to prioritize essentials over cycling products

Changing Consumer Behaviors

Consumer buying habits have shifted dramatically:

• Growth of Amazon during the pandemic has captured significant market share
• Rise of alternative online retailers in the post-Wiggle era
• Consumers now expect significant discounts, making it difficult to sell products at full price
• Price sensitivity has increased with inflation, turning cycling from an accessible activity into what some fear could become “the new sailing or golf” – a hobby for the affluent

The Inflation Challenge

Perhaps most concerning for the industry’s future is the dramatic increase in bicycle prices. What was once an activity open to people of all economic backgrounds now faces an accessibility crisis. As mentioned before, cycling “used to be open to all, [but] we run the risk of making it the new sailing or golf” – activities associated with higher income brackets.

Looking Forward

The UK cycling industry continues to evolve in response to these challenges. While other markets have experienced temporary disruptions in specific categories (like e-bikes in Germany), the UK seems to be facing a more universal and prolonged period of adjustment.

The industry must find new ways to remain competitive in this changed landscape, perhaps through specialization, enhanced customer experiences, or community-building that online giants cannot easily replicate. For consumers and industry professionals alike, understanding these shifts is crucial for navigating the road ahead in the UK cycling market.