With a weakening pound and the fact bikes and bicycle related products are mostly made abroad and bought in USD, customers are being warned that prices could see significant increases for the coming year.
Halfords are one of the brands warning of possible price hikes and say that since the vote to leave the EU, they have already seen prices starting to move in Asia.
Halfords boss, Jill McDonald, states that companies who deal directly with suppliers and have their own bicycle brands (such as Halfords) are in a stronger position than local bike shops. Dealing directly with the factories in Asia means it is possible to offset possible price increases by cutting corners elsewhere.
The real concern then is for smaller stores which sell 3rd party bikes that are first imported by distributors with manufacturing and supply chain details handled by the brands themselves. These bikes, components and clothing items are easily effected by fluctuating currency values.
The bike industry isn’t the only one effected with the falling value in the pound, several food and clothing companies are also predicting price rises for 2017 as suppliers hope to pass on costs.
What do you make of all this? Is this just fear mongering or is this a very real threat?