Reduction of inventory at Accell Group
In a recent interview with the FD media, relayed by Bike EU, the director of Accell Group revealed significant figures concerning the company’s inventory. In November 2023, nearly 320,000 bikes had not yet found owners. Today, this figure stands at 210,000.
Accell Group: a cycling giant in Europe
Accell Group, a major player in the bicycle market in Europe, owns numerous brands such as Batavus, Haibike, Lapierre, Loekie, Raleigh, Sparta, Winora, and Babboe. However, the company is facing financial difficulties, with an enormous debt of 1.2 billion euros. Acquired for 1.56 billion euros by the American company KKR in January 2022, Accell Group is attempting to straighten out the situation.
Tjeerd Jegen, the new leader since last October, aims to reduce inventory to 160,000 units by the end of the year. In November 2023, the group had 320,000 surplus bikes, a figure reduced to 210,000 today. The final target is to return to a normalized level of 160,000 units.
A struggling market
The majority of the inventory is intended for the German market, where bike sales decreased by 15% in 2023. This drop in demand was less for electric bikes (-5%). Germany, Italy (-23%), and Denmark (-40%) are among the countries most affected by this crisis. However, forecasts for 2024 are more optimistic with a recovery expected at the beginning of the year.
Corrective actions implemented
To counter the effects of overstocking, Accell Group has drastically reduced its production and implemented an aggressive sales policy with significant discounts. Production has been partially relocated to Hungary and Turkey, leading to the threat of 100 to 150 jobs in the Netherlands.
Evolution of market trends
The road bike market seems to be undergoing a transformation. During the pandemic, many enthusiasts bought expensive road bikes, now being resold at half price on platforms like eBay. In France, however, the electric road bike has withstood the crisis with slight growth (+3% in 2023), while the traditional road bike increased by 25%.
The overabundance of bikes at Accell Group is expected to gradually diminish in the second half of 2024, or even early 2025, depending on the markets. In the meantime, efforts are focused on reducing inventory and stabilizing the company’s finances.