Edinburgh bike expansion marks start of international co-ops year

Launched in 1977 when only a handful of bikes were sold, Edinburgh Bicycle Co-operative (EBC) has grown to become one of the UK’s leading manufacturers and suppliers of bicycles and accessories. Last year the company sold 20,000 bikes from six stores and online, recorded turnover of £11.5m, and employed more than 160 staff.

Next Thursday, at a special event to an invited audience to mark the start of the International Year of Co-operatives in Scotland, the company will unveil plans to grow turnover to £20 million by 2017, and increase staffing to nearly 300. The growth strategy will focus on further development of online retailing, new store openings and targeted acquisitions in local markets.

From the outset, the business has been a worker’s co-operative, with a clearly defined culture, vision and mission. A core aim has been to provide employment within a co-operative structure whilst advocating cycling as a sustainable, cost-effective and healthy mode of transport and leisure activity. Most of the full-time staff and many of the part-time staff own a share of the business, which the company believes ensures very high levels of customer service and repeat business.

Commenting on the expansion plans, Managing Director Jeremy Miles said: “The bicycle business is characterised by a handful of very large players at the volume end of the business with many excellent owner managed businesses servicing local markets. Edinburgh Bicycle Co-operative has a very distinct profile in the market where we focus on customer service and our brand personality. Underpinning the brand is the co-operative structure and values – it is a key asset that will drive our 5 year expansion.”

Scottish Enterprise has been working intensively with Edinburgh Bicycle Co-operative for the past two and a half years offering a tailored and integrated package of business support to help the company achieve its growth ambitions.

Edinburgh Bicycle Co-operative’s account manager at Scottish Enterprise, Simon Clegg,commented: “As one of the companies we work closely with, Edinburgh Bicycle Co-operative has access to a team that represents the different areas of business support we can offer. This approach has helped deliver specialist business growth advice such as organisational, leadership and management development and market research, sustainability and innovation support.

"Edinburgh Bicycle Co-operative is a truly globally competitive company with a forward thinking leadership team determined to succeed, and we look forward to continuing to work closely with Jeremy and his team as he delivers its ambitious growth plans."

Co-operative Development Scotland is co-hosting the event next Thursday. Its Chief Executive Sarah Deas added: “Edinburgh Bicycle Co-operative is an outstanding example of how a business can grow and prosper when the ownership is shared by the staff. We are delighted the company is marking the start of the International Year of Co-operatives in Scotland by showcasing its success and exciting plans for further expansion.”

2012 has been recognised as the International Year of Co-operatives by the United Nations in order to acknowledge the role of co-operatives as drivers of economic development and job creation, and the value they bring to local communities as creators of sustainable, resilient employment.

IYC 2012 aims to:

• Increase public awareness about co-operatives and their contributions to socio-economic development
• Promote the formation and growth of co-operatives
• Encourage Governments to establish policies, laws and regulations conducive to the formation, growth and stability of co-operatives.

To showcase the value of co-operative business models as drivers of economic growth, Co-operative Development Scotland (CDS) is delivering a programme of activity in Scotland. This will include visits to employee owned and consortia businesses, a flagship event hosted by the First Minister and various seminars and activities to encourage interest in the value of co-operative business models as effective structures for modern businesses.

More widely, the co-operative movement is working together to deliver a co-ordinated programme of activity to showcase the vibrancy of the co-operative movement. The Scotland campaign includes an event in the Scottish Parliament sponsored by the Cross Party Group on Co-operatives and a three day celebratory event at New Lanark.