Halfords UK Increases Focus on P&A Sales
REDDITCH, UK – Yesterday, Halfords UK posted its interim results for the 41 week period up to January 11, 2013, including the important Christmas sales. The company saw its sales in cycling products grow by 0.7%. CEO Matt Davies mentions in the interim report that the retail chain is to focus more on bike P&A sales in the near future.
Halfords Group plc saw its total revenue increase slightly by 0.8% in the 41 week period. In its financial statement the company notes: “We do not anticipate a material improvement in short-term trading conditions. Given the Retail revenue performance in the period our plans would indicate Group Profit Before Tax for the year ended 29 March 2013 in the range of GBP 68-72 million, a modest upgrade to our prior assumptions. We will continue to exit old inventory as we invest for the next financial year.”
Cycling Parts, Accessories and Clothing
These investments include, as Halfords states: “We aim to improve significantly the Halfords customer experience and develop category opportunities where our brand is under-represented in areas such as Cycling Parts, Accessories and Clothing; we are on track to deliver this expanded offer in the next financial year.”
Increase in Premium Cycle
Halfords is by far the biggest bike retailer in the UK. About its 41 week period performance in this area the company reports: “Cycling: an initially weak market for Older-Kids’ and Adult-Mainstream Cycles that improved in the final weeks of the period, partially offset by a strong increase in Premium Cycle and Cycle Repairs.”
‘Cycling sales initially disappointed’
CEO Matt Davies further noted: “Cycling sales initially disappointed but performed more strongly as the holiday period progressed and we were particularly pleased that momentum has been maintained in sales of Premium Cycles.” Halfords sells around 10,000 product lines in stores, increasing to around 16,000 lines online. Halfords own brands include the in-store Bikehut department, for cycles and cycling accessories, Apollo and Carrera cycles and exclusive UK distribution rights of the premium-ranged Boardman cycles and accessories.