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Halfords shares on a steep descent after summer washout hits bike salesHalfords barrier logo 3x2 (copyright Simon MacMichael)

Halfords shares on a steep descent after summer washout hits bike sales

Halfords reports disappointing sales in bikes - and blames a thoroughly British summer
by Sarah Barth
Sat, Sep 05, 2015 10:10
34

Halfords has seen disappointing sales figures on bikes for the summer, reporting decreasing trading for the 8-week period 4 July 2015 to 28 August 2015.

The disappointing cycling performance, down 11 per cent, was down to greater levels of discounting on mainstream bike brands, as well as poor weather deterring casual cyclists.

On the other hand, the groups’s cycle repair business remained strong, up 28 per cent.

Its weather explanation for weaker bike sales is supported by national statistics.

According to the Met Office, summer rainfall was up 13% on average by 26 August and the summer is set to have been wetter than all but five summers since 1988.

However shareholders were unimpressed and the group’s shares fell 8.5 per cent to close at 466.2p.

The news comes since the company’s acquisition of Olympic champion Chris Boardman’s eponymous bike business, plus the revamp of its Cycle Republic chain and more space devoted to bikes and accessories in the mainstream stores.

Halfords commented: “As we exit the peak season for mainstream bikes we will launch a complete refresh of children's bikes and accessories alongside a series of compelling offers for customers, underpinned by continued product and service training for colleagues.

“Looking further ahead, we have an exciting pipeline of innovation for bikes and accessories and we remain confident in the medium and long-term growth opportunities in the cycling market.”

Jill McDonald, Chief Executive, commented: "This recent weakness in our cycling sales is disappointing, but it comes after two years of very strong growth in the category.

"Looking ahead, we remain confident in the long-term growth opportunities in cycling.”

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34 comments

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huntswheelers | 8 years ago
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As Chris Froome won the TdF you would think that Halfords sales would maintain or even rise a little. I had a call from what was a potential customer who was after some information regarding a bike she had seen for her daughter and had been "sold" one by Halfords.... she said I'm told you are the man to speak to....after about 10 mins on the phone, I had qualified what her needs were and found that Halfords had tried to sell them a road bike...turns out the bike frame for the daughter would have been 11cm too small ...yes they told them that the daughter needed and would be best on a 43 cm cycle, whereas she needed a 54 cm.... shocking eh... so I ended up sorting her out a bike which the daughter is happy with .... I have also got more former Halfords customers on my books, various stories...cost...wrong parts... broke my bike....charged me for parts and didn't fit them... and that is just a few.... clearly Halfords are gearing up just to sell bikes and parts...even if they are wrong, a sale is the aim so it seems.... I have been in my local branch, no as a pro bike mechanic I don't need cycle kit....but I have used my British Cycling discount on Car Cleaning items and sundries and saved my membership fee back.... Methinks they should stick to cars, but they are not very good at that either...

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MervO replied to huntswheelers | 8 years ago
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huntswheelers wrote:

As Chris Froome won the TdF you would think that Halfords sales would maintain or even rise a little. I had a call from what was a potential customer who was after some information regarding a bike she had seen for her daughter and had been "sold" one by Halfords.... she said I'm told you are the man to speak to....after about 10 mins on the phone, I had qualified what her needs were and found that Halfords had tried to sell them a road bike...turns out the bike frame for the daughter would have been 11cm too small ...yes they told them that the daughter needed and would be best on a 43 cm cycle, whereas she needed a 54 cm.... shocking eh... so I ended up sorting her out a bike which the daughter is happy with .... I have also got more former Halfords customers on my books, various stories...cost...wrong parts... broke my bike....charged me for parts and didn't fit them... and that is just a few.... clearly Halfords are gearing up just to sell bikes and parts...even if they are wrong, a sale is the aim so it seems.... I have been in my local branch, no as a pro bike mechanic I don't need cycle kit....but I have used my British Cycling discount on Car Cleaning items and sundries and saved my membership fee back.... Methinks they should stick to cars, but they are not very good at that either...

Halfords Aberystwyth told me the british cycling discount only applies to cycle related sales.

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bendertherobot replied to MervO | 8 years ago
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MervO wrote:

Halfords Aberystwyth told me the british cycling discount only applies to cycle related sales.

I often have to explain it to lower minions but the Manager always backs me up. So I've used it on bike stuff, car stuff, roof rails, 3 x child seats, one Pioneer stereo for my brother etc.

For £35, or whatever it costs me, must have saved hundreds.

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iUpham | 8 years ago
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Over the past 6 months I have gone into Halfords 4 time and each time left without spending my money.

Staff i have met instore are rude and uneducated. They are expensive and don't carry a good variety in store.

My most recent experience was when I broke one of my SPD-SL cleats. I went into my local Halfords as it was the closest place that I would have expected to sell cleats... Not only did they not stock any, the guy tried to tell me SPD cleats would work on SPD-SL pedals... I tried to explain to him he was mis-taken but he wouldn't believe me. He then proceeded to talk to me like I was an idiot and literally called me a time waster as I didn't want to buy SPD cleats...

Needless to say I won't be going back into a Halfords and will actively encourage people to stick with the LBS or online retailer.

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