REDDITCH, UK – In the Halfords UK preliminary report for the 52 week prior to 30 March 2012 bicycles and accessories sales are an important profit maker. The UK’s largest bike retailer reports that cycling revenues rose by 9.7% in the financial year 2012. The overall group like-for-like sales, including the motoring products, were down 0.8%.
“In a challenging consumer environment we have made good progress in our key growth areas of Leisure, including Cycles, Fitting Services and Autocentres”, said David Wild, CEO of Halfords UK. “Our success in these categories and our detailed market research demonstrates how customers appreciate the help and value we offer and our opportunity for further growth.”
‘Best Cycle Shop in Town’
“As a result we are evolving our strategy to focus on strategic pillars so that we become the ‘Best Cycle Shop in Town’. We believe to have a unique end to end solution and are well positioned to increase our share in significant markets.”
“We are investing in these opportunities, specifically in fitting resources, increased marketing and enhancing our multichannel offer. This will accelerate the evolution of Halfords from a traditional retailer to a contemporary solutions provider, will contribute to future growth and create up to 1,000 new jobs.”
Disappointing sales start
Contrary to the FY 2012 revenues Halfords reports an unsatisfactory start of spring sales season. “Retail sales in FY13 have been very disappointing so far. In particular we have not seen the usual seasonal demand for cycling and outdoor leisure products. We believe some of these sales are deferred rather than cancelled, and we expect a stronger performance from these categories as the year progresses”, said David Wild.