Bikes and staycations deliver sales uplift for Halfords

Halfords has reported a 5% like-for-like sales increase for the 20 weeks to 21 August 2020. The retailer is putting the hike in sales down to the demand for cycling equipment and the trend to holiday in the UK over the summer due to coronavirus fears.

Cycling like-for-like revenue was up 59.1% and up 76% in its dedicated Tredz cycling business. Sales of electric bikes and scooters increased 230% year-on-year, while the Government’s Fix Your Bike Voucher scheme also encouraged more consumers to visit Halfords stores over the period. In addition, as UK holidaymakers stayed away from public transport, the Halfords motoring business reported a high level of demand for products including roof bars and roof boxes.

The retailer also said it is reaping the benefits from its new group web platform which helped deliver a 160% increase in online sales over the period.

“It has been especially encouraging to see our investments in key strategic initiatives both drive, and enable, such a resilient performance, allowing us to capitalise on favourable market shifts. In the last 12 months we have tripled our investment in the ongoing development of our web platform to enable a dramatic shift to online ordering, with sales up +160% year-on-year and representing 54% of total revenue in the period,” said Graham Stapleton, CEO at Halfords.

“We have also reaped the benefits in motoring services of a more scaled operation, a group web platform, a best-in-class digital operating model in our garages and a new media campaign to raise awareness of our unique proposition. And our strategic focus on B2B channels continues to drive strong double-digit growth.”

He added: “However, there is still significant uncertainty around the impact of Covid-19 and the macro-economic environment in the coming months, and as a result we are cautious on the outlook for the remainder of this year. Looking further ahead, we are confident in the long-term strategy of our business and in the growth prospects of the cycling and motoring markets in which we operate.”