In a $15 million plus deal Super Cheap Autos has bought Melbourne’s Goldcross Cycles as a starting point in its aim to build a national chain of “category killer” bicycle and accessory stores. Goldcross was established 30 years ago and is still managed by its sole shareholder, David Hall. Super Cheap is best known for its auto parts stores, but it also used a similar strategy three years ago to establish its BCF ("Boating Camping Fishing") division, when it took over a small retailer and then moved quickly to expand.

Quoting figures published by BIA and Cycling Promotion Fund Super Cheap referred to the size and continual growth of the bike market and anticipated future growth due to such factors as government bicycle infrastructure investment, environmental concerns, higher fuel cost, traffic problems in cities and increased focus on health and wellbeing.

Their retail aim is to create a chain of 50 superstores in bulky goods shopping areas or in shopping centre sites across metro Australia with future opportunity to build a chain of satellite stores across regional Australia and expanding the network in New Zealand. An interesting comment in their release is that “Market Power is largely held by distributors/wholesaler who allocate their bikes to stores on the basis of territories.”

Under the deal, Super Cheap will also pay about $1.4 million to buy 50 per cent of the shares in distributor Australian Bicycles from Mr Hall, and the remainder are under option. Australian Bicycles owns rights to distribute Fuji, SE and Kestrel brand bikes and accessories.