Halfords Results Up 5.6%

NOTTINGHAM, UK (January 21) - UK's biggest bicycle retailer, Halfords realized a 5.6% growth in overall retail sales during the period April 1 - December 31, 2001. This was reported by Halfords mother Boots the Chemist PLC. Total retail sales of Boots during the three quarters were up 3.6% compared to the same period of 2000/2001, while a growth rate of 2.4% was realized during the third quarter. Commenting on sales for the third quarter to 31st December, Boots chief executive Steve Russell said: "There are encouraging sales increases in a number of areas, most notably in our vital Health and Beauty categories. However the overall result is not at a level with which we can be satisfied. All parts of the company are making progress on our strategic programmes to accelerate the rate of growth". With regard to Halfords UK, third quarter overall retail sales were slowing down compared to the two earlier quarters and ended at a plus of 3.7% compared to the previous third quarter. Halfords is converting more and more of the 402 outlets into its Arcade programme which includes the Bikehut store-in-store concept for bicycles and bicycle products. Stores converted as part of the Phase 2 Arcade programme during the last 12 months recorded increases in retail sales of 18% in the quarter. Sales in stores from the Phase 1 programme which have now been open for more than 12 months, were up by 9%. A third phase of conversions involving 60 stores began mid January. The Halfords sales figures exclude the garage servicing operation sold to Centrica/AA in August 2001. The 402 Halfords shops in the UK sell car accessories next to bicycles and bicycle products. Halfords has a staff of 9,000 people. Half year results of end September 2001 indicated a plus of 20.4% in car accessories and a drop in bicycle sales of 14.2% (JO)