The first half of 2022 has been “disappointing” in terms of bike sales, the Tandem Group has said in its latest trading report.
In a statement to the market, published on 23rd June Tandem Group plc, parent company of distributor Tandem Group Cycles, said that trading has remained “challenging” in the year up to 17th June, with revenues down 31% on the same period last year.
The company said that sales from both national retailers and independent dealers were down, with the Tandem Group’s bicycle division 55% behind the prior period.
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In its statement, Tandem Group said: “During 2020 and 2021 our bicycles division benefitted from unprecedented demand that COVID-19 lockdowns created. That demand has now diminished and we are left with higher stock levels than we would like against a backdrop of overstocked customers. We will address this over the remainder of the year with a number of promotions and special offers.”
E-mobility, another focus area for the group, was also saw “disappointing results,” with turnover down 26% compared to the prior year, however this was still up 90% on the same period in 2020.
The statement added: “This is the area of the business we still believe has the largest upside potential for the Group, and investment is continuing in this area in order to best take advantage of the changing landscape of transport habits in favour of electrically powered modes of transport.”
Tandem Group, based in Solihull near Birmingham, is a designer and distributor of sports and leisure equipment, ranging from kids’ toys to garden and outdoor products.
The cycling wing of the company, Tandem Group Cycles, is a Birmingham-based distributor, that works with a number of well-known cycling brands, including Dawes, Claud Butler, and Falcon.
For the future, Tandem predicts that the remainder of 2022 will be challenging, but has highlighted a number of opportunities.
The potential legalisation of e-scooters could be one such opportunity, as Tandem has been investing in the micromobility market.
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The company added that growth in e-bike sales, and the planned opening of a new retail shop in Birmingham could help boost sales in e-bikes, e-scooters, and e-motorbikes.