Halfords suffers from cycle sales drop
Auto repair giant Halfords has revealed that poor bicycle sales has led to a drop in trading profit for the 13 weeks to 31 December 2010. Although group sales rose by 3.5 per cent, retail revenue at the Redditch-based company dropped 6.6 per cent in the trading period.
In its interim statement to the London Stock Exchange this morning, Halfords said that like-for-like cycle sales had dropped 16 per cent, which the company attributed to fewer children's cycles being given as Christmas presents and premium bikes having been affected by “the temporary slow-down in cycle-to-work sales”.
The company attributed its 3.5 per cent growth to the acquisition of the Autocentres brand in February 2010, at which stores customer footfall increased by 3.1 per cent.
David Wild, chief executive officer, said: "The strong performance from our car maintenance category and the positive sales in our Autocentres demonstrates how customers recognise Halfords as the destination for their motoring needs. We are building on this momentum and with the launch of our 240 rebranded Halfords Autocentres this Spring we will be uniquely positioned to develop our business further in the car-servicing sector.
“The cycle market was weaker this quarter particularly around Christmas gifting and cycle-to-work. Looking forward, we are confident that the fundamentals of the bike market remain sound. We are well positioned through the exceptional value that we offer customers, our award winning ranges and the professional repairs, servicing and expert advice of experienced in-store colleagues.”
