Bayleys news & articles

NZ’s oldest bike shop for sale offers new business owners the ride of their life

Tags: Commercial

New Zealand’s oldest cycle retailer, with a heritage going back almost a century, has been placed on the market for sale.

New Zealand’s oldest cycle retailer, with a heritage going back almost a century, has been placed on the market for sale.

MY RIDE Dunedin is a well-known stockist of quality cycles which traces its origins to a small pioneering bike shop known as Browns Bikes, which was set up in the heart of the city on Stuart Street in 1928.

Now located on a high-profile corner site at 110 Crawford Street, the business is reaping the rewards of a modern-day boom in cycling fuelled by new technologies and swelling ranks of riders.

The MY RIDE Dunedin business is now being marketed for sale as a going concern with an asking price of $350,000 plus stock and GST (if any) by Bayleys Dunedin.

Salesperson Muir Gold said the business was superbly positioned to capitalise on the opportunities of an increasingly two-wheeled future.

“MY RIDE Dunedin’s pioneering origins make it the ‘penny-farthing’ of New Zealand bike shops,” said Mr Gold. “Nearly a century on – freshly rebranded and refitted at a strategic inner-city site – it is finding a higher gear and racing into a future of growing markets and new income streams.”

The long-term owners rebranded the business last year as part of the MY RIDE national network of specialist cycling stores. It stocks more than 290 models of road, mountain and children’s bikes from leading brands – including the latest e-bikes powered by Bosch and Shimano, the industry leaders. The store also stocks an extensive range of accessories, with the ability to deliver to the customer’s door.

Mr Gold said assets for sale incorporated fitout of the leased shop premises and plant such as tools, computers and display units. Stock included in the sale had an indicative value of $200,000 to $350,000, which was seasonal and could be structured to a purchaser’s requirements.

Three full-time and four part-time staff are in place offering continuity and operational knowledge for new owners.

“MY RIDE Dunedin has great business fundamentals, with a track record of generating consistently strong revenue and profit. The business is now complemented by the support and benefits that come with membership of the MY RIDE national dealer network,” said Mr Gold.

“Operating from a highly visible and accessible location in a cycling stronghold, it is riding the wave of New Zealand’s burgeoning investment in recreational and commuter cycling.”

The MY RIDE Dunedin business made a gross profit of over $360,000 in the 2019 financial year.

More detailed financial information is available to potential buyers subject to signing a confidentiality agreement.

MY RIDE Dunedin’s leased premises at 110 Crawford Street consist of a recently-refitted 361-square metre shop/workshop on 674 square metres of land. The site supports multiple off-street car parks for staff and customers.

The business pays annual rent of $60,637.50 plus outgoings and GST. The current lease runs through to 2025, with three further five-year rights of renewal.

Mr Gold said the shop’s Crawford Street site forms part of Dunedin’s busy State Highway 1 arterial route, in a large-format retail precinct. “This ensures ready access from across Dunedin to a location with considerable customer pull,” he said.

“The store has long benefited from Dunedin’s status as a bastion of on and off-road cycling, with a growing network of dedicated cycle lanes, popular recreational rides and nearby rail trails. The city boasts a number of world-class mountain-bike tracks including Signal Hill and Redwoods Wakari Creek, plus longer rides such as Swampy Summit Circuit.

“Otago Peninsula has twice been named among the world’s ten best rides by the Lonely Planet guide. It’s therefore hardly surprising that Dunedin has given rise to some of the world’s most talented riders, such as track cycling world champion Greg Henderson and Commonwealth Gold Medalist Glen Thomson,” Mr Gold said.

The sale of MY RIDE Dunedin comes as demand for e-bikes is soaring. Imports nearly tripled in two years to a record 65,000 in 2019, according to Statistics NZ, with some commentators tipping e-bikes to overtake new passenger car sales in the next few years.

Mr Gold said e-bikes offered particular promise among new commuters. “The e-bike is popular with many older riders who may not have considered buying a traditional bike. They’re typically ridden more frequently, and over much longer distances. They’re also ideal for tackling Dunedin’s hills, which can be a deterrent for some urban riders.

“All of this is rapidly opening up a new market that barely existed a few years ago. From selling one or two e-bikes a month, this business is now selling one practically every day.”

At the same time, the interactive cycling game ZWIFT is driving an explosion in demand for indoor turbo trainers. With riders linking their turbo trainer to their device of choice, the ZWIFT app blends video games with serious training and e-racing from the comfort of your home.

Mr Gold said the mass home confinement of this year’s Covid-19 lockdowns had sent already-expanding global demand for ZWIFT and turbo trainers through the roof.

“More broadly, local trading conditions in Dunedin generally are set for a major boost from a $60 million cash injection from the Provincial Growth Fund. Focusing on the engineering and digital sectors and development of the waterfront, this promises hundreds of jobs and represents the biggest regional development initiative in Dunedin for decades.”

Mr Gold said the sale of MY RIDE Dunedin could represent a unique lifestyle business opportunity for a new owner-operator.

“Beyond the compelling business numbers, there may be an even greater reason to like MY RIDE Dunedin. For a cycle enthusiast, it offers a profitable business that enables you to work in and share your passion for cycling every day. It promises the ideal balance of a solid financial and lifestyle business. For the right buyer, it could be the ride of their life.”

Related articles