Tandem Group sees cycle stock stabilise, e-Bikes set growth path

The Tandem Group’s latest trading update has painted a picture of stabilising cycle stocks following a period of supply turbulence.

The update mirrors whispers in the trade of many shops having replenished their bicycle stocks and demand tailing into winter. For the Tandem Group bicycle revenue increased in November over September and October and demand for children’s bikes under the Squish banner was said to remain very strong.

E-bikes and e-Scooters remained drivers of growth and the trading statement suggested “We expect that this category will continue to expand in 2022 and we have therefore invested additional resource and capacity to facilitate the anticipated growth.”

Revenue to June 30th 2021 was around 14% ahead of the same period in 2020, improving further into Q3 with revenues 17% ahead. Into the fourth quarter and progress to date is said to be flatter year-on-year, though this was primarily down to Q4 of 2020 being exceptionally strong, according to the group.

The firm’s last trading update had some astonishing detail on the volume of orders in the pipeline, with the forward order book for cycles said to have hit £20 million.

There currently exists a closely watched discussion in the cycle trade as to what conditions will follow in 2022 when it comes to bicycle sales. Retailers and distributors CI.N has spoken with in recent weeks expressed that over ordering may produce conditions of over saturation if stock is not able to be redistributed; this could potentially return the trade to conditions where discounting of current model year stock returns sooner than many will have hoped.

Property upgrade

A doubling of available warehousing space announced earlier this year is on schedule with the adjacent plot to the firm’s Birmingham HQ now cleared, contractors appointed and work scheduled.