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COVID-19 triggered “third cycling boom,” says Rapha boss

Upmarket cycle clothing firm set to return a profit thanks to sales boost says CEO Simon Mottram

Rapha CEO Simon Mottram says that the coronavirus crisis has triggered a “third cycling boom” for the North London-based brand he founded in 2004.

He said that previously the company, which he still runs after selling a majority stake in 2017 to an investment group run by two heirs to the Walmart grocery fortune, benefited from sales spikes after the global economic crash in 2008 and the London Olympics four years later.

Speaking to Telegraph.co.uk, he said: “This is the third boom, I think that I've seen in my time at Rapha, the third cycling boom.

“It’s interesting how they tend to go hand in hand with economic problems and the rest of the economy that cycling has these wonderful moments.”

Mottram sold a majority stake in Rapha in 2017 to RZC Investments, a private equity firm run by brothers Stuart and Tom Walton, whose grandfather Sam Walton founded Walmart, the world’s largest retailer by turnover until Amazon took the top spot.

Parent company Carpega Limited is due to file accounts for the year to 30 January 2020 in the coming weeks.

The Telegraph reports that they will show that the company was close to breaking even in 2019/20, following a £5 million loss the previous year.

But Mottram told the newspaper that during 2020, the company saw sales rise by 38 per cent, with earnings before interest, tax, depreciation and amortisation expected to stand at around £13.8 million.

He said: “When we look at the new customers we've been pulling in – we’ve pulled in 155,000 customers last year, in 2020 – but by and large, those people around the world are existing cyclists.

“They’re not people who've just decided to buy a dayglow jacket and a hybrid to ride to work because it's lockdown.

“It's people who had already ridden a bit and possibly been in one of those booms before, but have gone through a year or two of riding and then lost interest for some reason.

“The prompt to revisit cycling that COVID gave was really powerful.

“It doesn't take more than two or three rides to think: ‘I love this. I've forgotten how much I love it.’ After that, they start to think, ‘Well, I'm not going on holiday, and I'm not buying a new car. So maybe I can afford a new pair of shorts?’”

He added that the company remains committed to weaning itself off the dependency on discounts that had previously hit its bottom line, as reported here on road.cc back in 2019.

> Rapha boss explains how brand is reducing reliance on discounts

Simon joined road.cc as news editor in 2009 and is now the site’s community editor, acting as a link between the team producing the content and our readers. A law and languages graduate, published translator and former retail analyst, he has reported on issues as diverse as cycling-related court cases, anti-doping investigations, the latest developments in the bike industry and the sport’s biggest races. Now back in London full-time after 15 years living in Oxford and Cambridge, he loves cycling along the Thames but misses having his former riding buddy, Elodie the miniature schnauzer, in the basket in front of him.

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6 comments

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Chris Hayes | 3 years ago
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I look forward to the return to quality in exchange for the absence of discounts.... my deep winter tights will be heading for the repair service once the cold weather passes... the stitching has gone - putting them on the subs bench.  

Meanwhile the Assos bib tights that are used more or less daily and washed several times a week show no sign of failure.

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BIRMINGHAMisaDUMP replied to Chris Hayes | 3 years ago
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unfortunately I have to agree. I always buy cycling jeans from Rapha - and they have always been excellent. Except the last pair which wore out really quickly around the butt. It could be a one off as all the other jeans and jackets and tops have been very good. 

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Chris Hayes replied to BIRMINGHAMisaDUMP | 3 years ago
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....it seems to be a recent issue.  I have some older kit which is fine.  Okay, you've always got the excellent repair service to fall back on, but it's a massive inconvenience to have expensive (GBP 220) kit out of service for 6 weeks at a time.  They were a bit more expensive, but if I'd bought the Assos tights first I'd only have needed one pair of deep winter tights...

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Dnnnnnn replied to Chris Hayes | 3 years ago
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It's only one personal experience but I found my Rapha shorts much less durable than cheaper alternatives. Whatever is the coating on the lycra dissolved fairly quickly, making them translucent in all the wrong places. Still good for winter under tights but disappointing from a 'premium' brand.

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Junaid | 3 years ago
0 likes

Can we bring the discounts back please?!

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oceansoul replied to Junaid | 3 years ago
1 like

even with discounts it is overpriced for Chinese made trash

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