Thinking of Buying a Bicycle Shop in Australia? Here Are 3 Vital Questions to Ask
The Australian bicycle retailing and repair industry generated $1.02 billion in revenue in 2025 across 1,236 enterprises, employing about 4,500 people.
Profit margins average 4.2%, equating to $43 million in total profit. While revenue growth has been modest at just 0.1% annually since 2020, future growth of 1.7% per year is forecast through 2030 as cycling gains momentum for health, transport, and environmental reasons.
Electric bicycles (e-bikes) have emerged as the strongest growth category, offsetting weaker demand for traditional models. Rising fuel prices, government investment in cycling infrastructure, and a $100 million National Active Transport Fund are further supporting the industry’s long-term outlook.
1. Is the Business Financially Sustainable and Resilient?
Why It Matters:
Bicycle shops are cyclical businesses, strongly affected by discretionary income levels and consumer sentiment. Profitability depends on effective inventory control, diversified sales, and service-based income.
What to Check:
-
Revenue mix – Bicycle sales still represent 63% of industry revenue, but parts, accessories, and repairs now account for over 37%.
-
Profitability – Margins average 4.2%, with higher returns in repair and e-bike sales.
-
Cost structure – Purchases and rent are the largest expenses; imported products expose operators to currency fluctuations.
-
Cash flow management – Assess turnover consistency, particularly during off-peak months when recreational demand declines.
-
Inventory risk – Oversupply issues since 2023 have forced many shops to discount heavily, eroding margins.
2. Does the Business Have a Strong Local Market Position?
Why It Matters:
Competition in the industry is intense, with most shops being small independent retailers. Larger chains like 99 Bikes and My Ride dominate national market share, leaving local stores to differentiate through expertise and service.
What to Check:
-
Customer base – A loyal community following and repeat repair clients are key for stable income.
-
Reputation – Positive online reviews, sponsorship of local cycling events, and skilled technicians enhance brand trust.
-
Product range – Offering electric bikes, custom builds, and quality accessories can strengthen competitive advantage.
-
Partnerships – Links with schools, fitness clubs, and cycling organisations can expand customer reach.
-
Location – High visibility and proximity to cycling paths or recreational hubs improve foot traffic and sales.
3. Is the Business Positioned for Future Industry and Technology Trends?
Why It Matters:
Shifts toward electric mobility, sustainability, and online retail are reshaping the bicycle market. Shops that integrate technology and customer experience innovations will outperform traditional operators.
What to Check:
-
Electric bikes – E-bikes are the fastest-growing segment, appealing to commuters and older riders. Retailers offering service support and financing options are best placed for growth.
-
Digital transformation – Integrated point-of-sale systems, online sales, and social media marketing attract younger consumers.
-
Government support – Ongoing investment in cycling infrastructure will continue to stimulate bicycle ownership and usage.
-
Sustainability – Consumers increasingly prefer durable, repairable, and ethically sourced products.
-
After-sales services – Regular maintenance packages, loyalty discounts, and rider workshops help secure repeat business.
Ready to Invest in a Thriving Bicycle Shop Business?
With rising demand for healthy, sustainable transport options and renewed government support, bicycle retailing offers steady long-term potential.
Success depends on maintaining financial discipline, building local trust, and embracing new technology to meet the growing appeal of electric and lifestyle cycling.
For Buyers:
Create an account to set up alerts here.
For Sellers:
Sell Your Business here.