Britain’s cyclists should expect to see “considerable increases” in the price of their bikes and cycling kit in the medium and long term after the country voted to leave the EU on Thursday, according to the owner of one of the UK’s biggest cycling distributors.
Mark Edwards, the founder of Paligap Limited which imports products from the likes of Cipollini, PowerTap and Challenge, told Cycling Weekly that although there may not be a overnight increases in consumer prices, long term price hikes are may be inevitable if the Pound continues to lose value.
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“If the Pound continues to fall then prices will have to rise quite considerably”, said Edwards. “It won’t happen immediately as distributors should have stock of products that they bought at old prices. However when they need to buy new stock that will cost them more, so consumers should expect to see price increases in the next 3-6 months.”
“Basically if you’re looking to buy a new bike or some new kit, it’s best to do it sooner rather than later.”
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The value of the Pound has dropped considerably since the EU referendum on Thursday, with sterling hitting a 31-year low against the dollar, currently trading at around $1.31 compared to $1.50 shortly before the result of the referendum started to become clear. Likewise sterling has also dropped in value against the euro, trading at around €1.20 compared to €1.32 on Thursday night.
However it is not all bad news, with Edwards also predicting that some UK manufacturers could see a boost in exports.
“There’s a possibility that the cheaper Pound could be good for British manufacturers as it will be cheaper to buy from the UK. The only problem is that this could be offset by increased costs in raw materials if those are brought in from abroad.”