UK consumers turn to outdoor goods as retail sales rise
Finally, some good news. There was a surprise rise in retail sales in May, proving when the sun comes out, sales tend to rise, even in less than optimum circumstances.
The Office of National Statistics said retail sales rose 0.3% in May 2023, following a 0.5% rise in April 2023. Online retailers selling outdoor-related goods and summer clothing saw volumes up 2.7% in May.
Even those modest gains bucked expectations, amidst the backdrop of the increased cost of living and food prices. Food store volumes fell 0.5% in May and this week the Bank of England controversially decided to raise interest rates for the 13th time in a row, to 5%.
If we surmise that those outdoor-related goods sales include bicycles and related products, then seeing a rise in May chimes with new sales data from Germany. The ZIV reported that a sluggish start to bike sales in 2023 picked up considerably in mid-May. “June has also been very strong so far,” added the ZIV.
The ONS graph at the top of the story makes for interesting viewing. Running May 2019-May 2023, it illustrates volume sales (seasonally adjusted) for online retailers, clearly showing the Covid bump in Q1 2020 and how things have been gradually tailing off ever since, by and large. Perhaps surprisingly, volume sales are still above the level of those pre-Covid, in May 2019.
That Covid bump, coupled with long lead times, are seen as the chief suspects behind the current high inventories blighting the cycle industry (and indeed have been cited in administrator reports). That challenge is in addition to a tough economic climate where consumer spending is being curbed by inflation.
There is more specific cycling industry data for the UK in CyclingIndustry.News’ 2023 Market Report, which surveyed a cross section of the cycle industry’s independent retail sector. We’ve got a sample of that report here and details on how to get hold of the full thing here.
