Belgian bike retailers earn little from bike leasing

Source: Nieuwsfiets

At the recent Velofollies trade show, market research specialists GfK gave a presentation reviewing the status of the Belgian cycling retail sector in 2025 compared to 2024. Sales volume, particularly for e-bikes, was relatively strong, however profit margins are under pressure, with sales via leasing schemes a contributing factor.

The GfK presentation drew on information from Belgian newspaper De Standaard, and shared headline figures of a 7.7% rise in bicycle sales to 250,400 units and a revenue increase of 11.8%. Electric bikes accounted for over 80% of total revenue in 2025.

Bicycle leasing has bloomed in Belgium recently, with tax-advantaged employer schemes allowing their staff access to bikes – especially e-bikes – which some may normally consider outside of their financial reach. During the Velofollies presentation, it became apparent that the system has not been as financially attractive as expected for bicycle retailers, who have reported that leasing companies are forcing retailers to offer significant discounts.

The effect on profitability

Bicycle retailers typically expect to see a gross margin of around 30% on a bicycle, however leasing companies are demanding discounts of up to 10%. With the speed pedelec segment seeing over 60% of sales generated through leasing, large bicycle retail chains are therefore barely profitable, or even operating at a loss. Independent bicycle shops are also affected, as some leasing companies operate their own distribution points, placing a limit on the role and income of smaller, independent retailers.

Thomas Vanderhoydonck, of Fietsen De Geus and chairman of the Traxio Velo advocacy group, said to De Standaard: “The profit margin on a private customer is simply higher. Moreover, leasing customers also involve more work because there’s more administration involved.”

The government’s role

De Standaard has highlighted that the government’s role in the bicycle sector raises questions. Through Participatiemaatschappij Vlaanderen (PMV),  an independent organization owned by the Flemish government, there are links with various cycle industry entities. Examples include a loan to Fietsen Wildiers, which was recently converted into an equity stake; Wildiers has grown to become the largest bicycle chain in Flanders after making several acquisitions. PMV is also a shareholder in the Aska Bikes brand, raising questions about market conditions and competition.