99 Bikes on a roll with sales in Covid times as aviation stalls

AS his father’s travel empire struggles with global border closures, Matt Turner’s 99 Bikes is expanding as people look to two-wheels during COVID-19.

While his father’s travel empire is struggling with global border closures, Matt Turner’s 99 Bikes is expanding as people look to two-wheels to get about during COVID-19.

Mr Turner, the son of Flight Centre co-founder Graham “Skroo” Turner, has ambitious expansion plans for the Brisbane-based retailer that sold 20,000 bikes in January alone, double the same time last year.

“The pandemic is still having an impact on bike demand,” said Mr Turner. “People are wanting to avoid public transport and also seeking an outlet for recreation.”

He said the surge in global demand for bicycles during the pandemic had meant sourcing product had been challenging for bike retailers.

“Global supply chains have been struggling because demand for bikes has been so high,” Mr Turner said. “We get a lot of our bikes from factories in Taiwan and China and have been better on the supply side than others.”

Mr Turner founded 99 Bikes in 2007 from a single shop in the Brisbane suburb of Milton. The company’s name is drawn from the fact the outlet only had room for 99 bikes, with the one room tripling as a workshop, office and stockroom.

Tennis player John Millman picks up his bike from 99 Bikes CEO Matt Turner in Brisbane last year. Picture: Glenn Hunt

The stellar performance of 99 Bikes is in stark contrast to Flight Centre, which remains its major financial backer.

Flight Centre last year recorded its first loss since it was founded in 1982, with large numbers of its workforce stood down or made redundant and half its global stores closed. On Thursday, it delivered a $317.3m headline loss for the December half but noted 99 Bikes continued to trade strongly, with sales more than doubling.

Flight Centre holds an almost 47 per cent stake in Pedal Group, which owns 99 Bikes and a bicycle distribution business, Advance Traders. The balance is held by Matt and Graham Turner and staff. In the half-year accounts, Flight Centre boosted its share of profit from Pedal to $8.9m, up from $1.8m a year ago.

The bike retailer has 51 stores across the country and five outlets in New Zealand. There are plans to open another 13 stores over the next few years.

The number of employees has grown to almost 1000, with another 100 to 150 positions expected to be created as more stores open.

Mr Turner said that there had been strong demand across all Australian states in the past 12 months, with particular growth in areas where the pandemic lockdowns were the longest.

“Victoria has emerged as a strong market because it was in lockdown longer than other states,” said Mr Turner. “People want to go outside.”

Other bike retailers in Melbourne have reported their busiest period in a decade.

Mr Turner said e-bikes and mountain bikes were emerging as popular choices as people sought comfort and versatility on their daily ride.

Originally published as 99 Bikes on a roll with sales in Covid times as aviation stalls