Edinburgh Bicycle Co-operative set to add 140 jobs & double in size

Scotland's largest bike retailer sets its sights on London, Birmingham, Bristol and points south

by nick_rearden   January 8, 2012  

Edinburgh-Bicycle-Co-Op-photo-by-Simon-MacMichael

Edinburgh Bicycle Co-operative (EBC), Scotland's biggest chain of bike shops plans to double in size by 2017, grow it's workforce from 160 to nearly 300 (all have a share in the company) and increase turnover to £20m. That is what Jeremy Miles, Managing Director of the Edinburgh Bicycle Co-op Jeremy Miles will be telling the Scottish launch of the United Nations International Year of Co-operatives this Thursday.

The EBC announcement is yet another sign of the continued health and growth of the UK cycling economy. Last summer  a report by the London School of Economics that estimated the UK's 'Gross Cycling Product' contributed £2.9bn to the UK economy with the retail sector turning over £2.47bn annually. Despite the economic difficulties now facing the country, the UK's cycling economy is forecast to keep on growing.

EBC won't need any introduction to our North of the Border readers or even those in the North of England these days, having sold £11.5m of cycling goods in 2011 including 20,000 bikes through the original shop in Edinburgh plus five others in Aberdeen, Leeds, Manchester, Newcastle and Sheffield as well as through its successful online operation www.edinburghbicycle.com. EBC has also enjoyed success with its in-house Revolution brand of well priced, well specced bikes and accessories.

The first store opened as a co-op in Edinburgh in 1977 with the staff owning a share of the business once they had completed an induction period. To this day, employees are invited to become members of the co-op after a year’s 'apprenticeship'.

Jeremy Miles previewed his speech in today's The Scotsman, saying he wants to focus on online retailing, new store openings and "targeted acquisitions in local markets" especially struggling existing independent shops.

"The bicycle business is characterised by a handful of very large players at the volume end of the business," he continued, "with many excellent owner-managed businesses servicing local markets.

"Edinburgh Bicycle Co-operative has a very distinct profile in the market, where we focus on customer service and our brand personality.

According to Miles, "There are a lot of changes going on at the moment with private equity firms coming into the cycling industry. The traditional bike shops that everyone would think of are finding it quite difficult and are disappearing," he said.

As road.cc posted in December, an investor called Bridgepoint paid £180m for Wiggle, while Cycle Surgery and Evans Cycles are also private equity owned.

Miles continued, "The growth in the market is very much the weekend leisure cyclists and the commuter. The internet is also driving a lot of this and we want to be part of it, but we want to be a business with a slightly alternative view."

So far the co-op's expansion has been restricted to Scotland and the North, as the EBC distribution centre is situated on the outskirts of Edinburgh, but Miles says many of the growth areas are in the south.

“The real opportunity is in places like London, Birmingham and Bristol,” he said, adding that distribution problems are "not insurmountable," he says.

Interestingly, he's hoping the business will develop along the same lines as the Co-operative Group’s food business, which follows not far behind the big four food retailers.

"That’s an interesting model and something we would aspire to, especially in the shadow of these large powerful corporates that are coming along," he said.
  
The Scottish launch of the UN International Year of Co-operatives will be co-hosted on Thursday by Co-operative Development Scotland along with EBC at their original store on Whitehouse Loan, Edinburgh. The international event aims to increase public awareness about co-operatives while promoting their formation and growth.

Jeremy Miles says about EBC in particular, "Underpinning the brand is the co-operative structure and values - it is a key asset that will drive our five-year expansion."

According to Sarah Deas, chief executive of Co-operative Development Scotland, "Edinburgh Bicycle Co-operative is an outstanding example of how a business can grow and prosper when the ownership is shared by the staff."

6 user comments

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I have only good things to say about the company, from purchasing bikes and kit.

Fingers crossed that level of quality and service can be maintained as they grow.

jimmythecuckoo's picture

posted by jimmythecuckoo [1196 posts]
9th January 2012 - 12:44

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Having bought two (commuter) bikes from EBC a shop in Birmingham would get my custom Smile

posted by RichK [21 posts]
9th January 2012 - 14:17

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Ditto - my track pump for a tenner works a treat.

However, looking at the bigger picture, I don't want the retail sector for cycling to become like every other high street - in Manchester/Cheshire we have a good number of one-site shops, including some fairly knowledgeable places like Harry Hall cycles. I would hate to see them all switching to stock the same brands under the same name via a series of acquisitions. There are so many brands available that many would simply fall by the wayside (in the UK market, anyway). I like the fact that (all within a 15 mile radius), for example, if I wanted to buy a Bianchi or a Trek Project One, I can go to the Bicycle Doctor. Orbea? Withington Cycles. Cervelo? Royles. I've recently bought something from each one of these places, and would like to see them stick around.

Having these all distilled down to 3 or 4 big players would surely drive out the less popular brands.

Dodging the saccadic masking

posted by notfastenough [2733 posts]
9th January 2012 - 14:20

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Good for them. A great company in my experience with a sound ethos and excellent service. This is not a case of another behemoth business driving out the smaller shops. Incidentally, they do a very good, inexpensive bike maintenance course.

Chiswick

posted by Chiswick [45 posts]
9th January 2012 - 18:01

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Every transaction I've dealt with them on, including a couple of warranty issues, has been a textbook example on how to get customer service right. I've had two bikes from them, one of which I still own and use five years later, and several hundred's of pounds of kit.

I'd certainly make a detour when in London to visit and shop at their proposed store there.

Really, though?

posted by workhard [317 posts]
9th January 2012 - 19:04

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My first 'proper' MTB was an Edinburgh Bicycle own brand back in the mid 90's. Weighed the best part of a ton mind! Always pay them a visit when nearby, be happy to see them grow.

posted by The Flying Scotsman [14 posts]
11th January 2012 - 17:30

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