Independent retail crisis deepens yet bicycle retailers see signs of growth

Whilst it will seem like cold comfort, it is clear that the cycling retail market is far from the only element of the UK high street retail sector currently taking serious strain.

Taking the opportunity to explore trading conditions, here we share insights from both the ACT and BA, with views reflecting the wider retail sector, and those of cycle retailers specifically.

As we read the details shared by both bodies, it seems fair to ask, “Is the retail crisis reflective of the wider economic outlook of the country? Will government step in to prevent retail sector performance from suffering further? Is the cycling industry finding new customers as the cost-of-living crisis continues to impact transport mode decision-making?”

The Bicycle Association (BA) has just released its half-year UK market report, which shows that whilst it’s still a tough trading environment, the UK cycle sector has seen the first consistent return to growth in the first half of 2025 since the downturn began in mid-2021.

Boosted by Spring sunshine, the report details how Independent bike shops have seen value growth of +7% year on year in the January to June period, and +9% just in Q2.

Whilst road and hybrid bikes were negative YoY in Q2 for IBDs, this was more than offset by strong growth in both mechanical and electric MTB, Gravel, folding and Cargo bike categories, as well as BMX, helped in some cases by widespread e-bike sales promotions.

Whilst value growth in the period is positive vs pre-COVID, it is worth saying that total bike volumes still remain well below those of 2019.

The Association’s current forecasts predict a return to 2019 levels won’t take place until 2027

BIRA and the ACT have shared details reflecting the wider experience of UK high street retail, as part of its reporting and insights shared with the cycling industry.

Britain’s high street crisis has deepened dramatically, with nearly half of independent retailers, including many in the independent cycling retail sector, reporting sales have crashed compared to last year, according to worrying new research that exposes the scale of the struggle facing local businesses.

The figures, released by ACT parent company Bira, show 46% of businesses suffered worse Q2 2025 trading compared to the same period in 2024, with stretched household budgets leaving customers unable to afford “extra luxuries.”

The latest Heartbeat survey, conducted over two weeks from July to August 2025, gathered responses from members of the ACT, as well as from the entire Bira Group. The quarterly research measures trading performance throughout the year, providing crucial insights into the health of Britain’s independent retail sector, including specialist cycle shops that often act as community hubs.

While 45% of respondents said Q2 was much or somewhat better than Q1 2025, this improvement came against the backdrop of Q1 traditionally including the January sales period, with Q2 typically representing quieter trading months. More concerning, only 13.8% reported Q2 2025 was better than Q2 2024, highlighting year-on-year challenges.

Retailers cited squeezed household finances as a primary concern, with one respondent noting: “Money appears to be tight for households; everyday costs leave households with very little to play with for extra luxuries.” Another observed that “good weather was keeping people out of the high street.”

The cycling sector presented a mixed picture, with some independent cycle retailers benefiting from improved weather conditions. One cycle shop reported: “Cycle retail, the better weather and reduced discounting in the marketplace has really helped.” However, others faced difficulties, with one noting: “Sales were very weak in April due to the stock market crash caused by Trump Tariff announcements. Sales in May and June were significantly better.”

Industry-specific challenges persist, with retailers highlighting “lots of overstock throughout the industry still flowing through the system. Plus, aggressive new brands direct from China and Taiwan infiltrating the market.”

When asked about government priorities for the autumn statement, an overwhelming 47% of respondents identified business rates reform as the most critical issue requiring attention. Other priorities included minimising national minimum wage increases, addressing cybercrime, and increased government spending on policing.

One retailer warned: “The threat of additional tax rises and the outcome of the budget in the autumn may cause further anxiety by consumers and put pressure on sales in the crucial Christmas period.”

Andrew Goodacre, CEO of Bira, said: “These findings paint a concerning picture of the challenges facing Britain’s independent retailers. With household budgets under pressure and business confidence fragile, our members are facing a perfect storm of rising costs and uncertain consumer demand.

“The government must recognise that independent retailers are the backbone of our high streets and take decisive action to reduce the amount retailers actually pay for business rates, especially as next year many thousands will pay more. Without this support, we risk losing the diverse, vibrant retail landscape that makes our communities special.”

The Heartbeat survey is conducted quarterly by Bira Group, measuring trading performance throughout the year among independent retail businesses. The Q2 2025 survey was conducted over two weeks from July to August 2025, gathering responses from Bira Group members, including independent retailers and members of the Association of Cycle Traders.