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Halfords reports profits surge and "no sign of slowdown" in bike sales

The bike and car retail giants doubled its profits in the first half, and predicts the so-called green transport revolution reported early on in the pandemic is here to stay

Halfords has announced surging sales in the first half of the financial year, reporting a 116% rise on last year which amounted to a £56 million pre-tax profit. The cycling side of its business played a crucial part, with Halfords' CEO claiming bike sales are even beginning to accelerate again. 

> Halfords launches 26 Carrera bikes

Selling more bikes than any other UK retailer, Halfords continued trading as an essential retailer during the first lockdown (and the current lockdown) which contributed towards a 54% rise in cycling revenues during the period. Profits have also slightly surpassed expectations according to a late September forecast, which predicted a figure of around £55 million. Sales of e-bikes and scooters were up 184%, and Halfords has committed to having a specialist electric technician in every store by the end of the financial year to meet the increased demand for electric bikes and cars. 

CEO Graham Stapleton told The Standard that profits for the first half were equal to the whole of the last financial year, and is confident a greener transport recovery will continue after the pandemic despite some uncertainty for the second half: "There is absolutely no sign of any slowdown in growth [of bike sales] that we are seeing - if anything more recently it accelerated again", said Stapleton. 

"And for the mid to long term the government are investing enormous amounts in cycling... there are so many reasons for the bike growth to continue, I can't see it stopping. It might slow a little from the huge growth we are seeing now, but I think there will still be growth going forward."

Halfords has decided against declaring an interim dividend, most likely due to uncertainties with Brexit and the second lockdown as outlined in its profit forecast back in July. Even so, the company says that sales in the first five weeks of the second half have continued to be strong, with "good growth and increased market share in cycling, alongside resilience in our motoring products and services businesses”.
Stapleton also told Retail Gazette: “We have worked hard to capitalise on the cycling market tailwinds by sourcing more stock from existing and new suppliers, as well as launching new products and brands to serve the high level of demand for our cycling products and services."

The big boys aren't the only ones reporting accelerating profits amid the increased popularity in cycling during the pandemic - London-based bike subscription company Buzzbike has just announced a 121% spike in sales in the first week of the second lockdown, while cycling luggage specialists Restrap has doubled its staff after reporting a huge 270% increase in orders.  

Arriving at road.cc in 2017 via 220 Triathlon Magazine, Jack dipped his toe in most jobs on the site and over at eBikeTips before being named the new editor of road.cc in 2020, much to his surprise. His cycling life began during his students days, when he cobbled together a few hundred quid off the back of a hard winter selling hats (long story) and bought his first road bike - a Trek 1.1 that was quickly relegated to winter steed, before it was sadly pinched a few years later. Creatively replacing it with a Trek 1.2, Jack mostly rides this bike around local cycle paths nowadays, but when he wants to get the racer out and be competitive his preferred events are time trials, sportives, triathlons and pogo sticking - the latter being another long story.  

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8 comments

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BBB | 3 years ago
0 likes

There is a reason why the best workshops/hotels/restaurants and other service based businesses have long booking times...
 

 

Avatar
wtjs | 3 years ago
1 like

I arranged in the summer for a 78 year old friend, getting back in action after a bowel cancer op, to get a Boardman Adventure bike with cable discs, fat tyres, 9 speed Sora double 48/32 and aluminium frame, from Lancaster Halfords. It was well prepared and has been a great success, although fitting the mudguards is hard work (but worth it- the Halfords plastic guards work well). That was after my delight with getting a similar Vitus Substance from Chain Reaction. Both companies highly recommended. 

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Muddy Ford | 3 years ago
3 likes

The Halfords local to me have been great. I ordered an e-bike at the peak of demand in Summer and it arrived in 5 days but we discovered after going to collect that it was too small so they replaced it for next size up within another 5 days. I took my daily bike in for an emergency repair because my usual independant shop had no availability for 2wks, and Halfords fixed it next day with parts and labour cheaper than the independant quoted me just for parts. They did a great job too, so I am switching my service to them in future. I hope the cycling revolution continues at this pace, it can only improve safety for us all as councils and police forces have to take our safety more seriously as more inexperienced people cock their legs over one...

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Sriracha replied to Muddy Ford | 3 years ago
0 likes

Which model elec bike did you get? Any good?

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Muddy Ford replied to Sriracha | 3 years ago
3 likes

Boardman Hyb. Very good. The Fazua drive is the same as used on £7k+ plus bikes elsewhere, and disconnects completely when you reach the maximum assist so it doesnt feel like an electronic brake. The batteries weigh only 1.3kg and the whole bike is less than 14kg which was a key factor in the decision. You can remove the motor and battery and ride it like a non ebike, and it weighs only 11kg in this form. Other half loves it, and beats me up steep hills every time. The battery lasts for a good 45 miles even when on maximum assist, on a route with about 1000ft climbing. Really impressed with it.

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Sriracha replied to Muddy Ford | 3 years ago
1 like

Thanks Muddy Ford, exactly what I was hoping to hear. Interested in the women's version for herself. I think the only criticism I've heard is about having to drop out the battery/motor unit to switch the thing on after it has timed out. I'm told it's a bit of a chore. But I've heard there is a software fix on the way.
Also, for some odd reason, whilst they have thru-axle at the front, it's still QR at the back. Just triggers the nerd in me!

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Muddy Ford replied to Sriracha | 3 years ago
1 like

We had to get the mens medium as the largest womans size was too small. Halfords had updated the software before we picked up, and included the Black Pepper update which smooths out the power transfer apparently. The button to release the battery is a bit sticky and you need to make sure you are ready to catch the motor. But it really is no problem. Getting mudguards for it was though. I also changed the stem and bars for more upright riding position as the standard is a bit aggressive.

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RoubaixCube | 3 years ago
3 likes

Well, If they are meeting demand and dont have silly wait times like evanscycles then more power to them.

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