Super Cheap Autos today announced the purchase of two bicycle retail chains for a combined $7.4 million, just a week after travel specialist Flight Centre announced the purchase of a bicycle brand and talks over a possible joint venture with the 99Bikes retail chain.
The answer, according to Super Cheap Auto CEO Peter Birtles, is soaring energy costs and environmental concerns. Birtles says the bike retail and accessories market is worth around $1 billion a year, but is a highly fragmented market.
Bike sales grew by nearly 20 per cent last year and further growth is expected because of those environmental concerns, the rising cost of fuel and expected government investment in bike paths and the like.
A very forward thinking management at these companies. More from Business Spectator.