Distribution Channels
Bicycle sales are accomplished in this country through five primary and distinct channels of distribution — specialty bicycle retailers, mass merchants, full-line sporting goods stores, outdoor specialty stores, and "other," which is comprised of a mixture of retailers (including Internet sales). While sales were down in 2013 for each category, all were impacted equally in terms of their market shares.
Department, discount and chain toy stores (mass merchants) sell mostly price-oriented products. Approximately 75% of bicycle units were sold through the mass merchant channel in 2014, representing 31% of the dollars at an average selling price of $82. The market share represents a slight increase from 2013, while the average selling price fell by a few dollars.
The approximately 4,000 specialty bicycle retailers commanded approximately 14% of the bicycle market in terms of unit sales in 2013, but 50% of the dollars, a dominant dollar share. Dealer price points generally start at around $200, with the average at $714, though prices can range into the thousands. While the number of specialty bicycle stores has declined in recent years due to consolidation, they are responsible for approximately the same amount of business through these fewer (but larger) stores today. It should be noted that new bicycle sales represent about 47% of the revenue for the average specialty bicycle retailer, with parts, accessories, service/repair, rentals and fitness equipment sales comprising the rest. Specialty bicycle retailers as a group feature quality merchandise, and add value through services such as bike fitting, assembly, repair, and community involvement.
Chain sporting goods stores sold approximately 7% of the bicycles in 2014, and 9% of the dollars, at an average price of $255. These are merchants that fall somewhere between mass merchant and bicycle dealers on the spectrum, and include stores such as The Sports Authority, Champs Sports, JumboSports, Sportmart and Big 5.
Outdoor specialty retailers sold approximately 2.5% of the bicycles in 2014, representing 7% of dollars and an average retail selling price of $554.
The "other" category sold 1.5% of the units, representing 2.5% of the dollars, with an average price of $330.