73% of all bikes sold in the U.S. are sold through mass merchants (Wal-Mart, Target, etc.) at an average selling price of $77.

"bike shops" sell only 17% of the market (in unit terms) at an average price of $453.

The total "specialty store" bike channel does about $2.5 billion in revenue per year. That's about one-sixth the size of the U.S. pet food market.


From the National Bicycle Dealers Association:
DISTRIBUTION CHANNELS
Bicycle sales are accomplished in this country through four primary and distinct channels of distribution — the specialty bicycle retailer, the mass merchant, full-line sporting goods stores, and "other," which is comprised of a mixture of retailers, including multi-sport stores such as REI, outdoor retailers and mail order.
Department, discount and toy stores sell mostly price-oriented products. Approximately 73% of bicycle units were sold through the mass merchant channel in 2007, but this represented 36% of the dollars due to the average selling price of $77.

The approximately 4,400 specialty bicycle retailers feature higher quality merchandise, and also rely on adding value through added custom services such as bike fitting, expert assembly and repair. This channel commanded approximately 17% of the bicycle market in terms of unit sales in 2007, but 49% of the dollars, a dominant dollar share. Dealer price points generally start at around $200, with the average at approximately $453, though prices can range into the thousands. While the number of specialty bicycle stores has declined in recent years due to consolidation, they are responsible for approximately the same amount of business through these fewer (but larger) stores, and this is the only distribution channel that maintained or increased average retail bicycle selling price in recent years.

The recent trend has been for mass merchant gains in unit sales market share, but stability in dollar market share due to declining prices in the mass segment.Chain sporting goods stores sold approximately 7% of the bicycles in 2007, and 9% of the dollars, at an average price of $202. These are merchants that fall somewhere between mass merchant and bicycle dealers on the spectrum, and include merchants such as The Sports Authority, Champs Sports, JumboSports, Sportmart and Big 5.

The "other" category sold 3% of the units, representing 6% of the dollars, with an average price of $314.

Specialty bike dealers commanded the vast majority of parts and accessories sales, and virtually 100% of the service market. They dominate the market in bicycles selling for $250 and up.