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Halfords retail sales slump

Poor weather and heavy discounting have dampened cycling sales at retailer Halfords.
September 2, 2015

Halfords' (HFD) shares fell 9 per cent after the group revealed sales of bicycles and accessories have fallen sharply in the past two months. In the last eight weeks, cycling sales fell 11 per cent against tough comparative figures from last year as poor weather deterred cyclists from hitting the roads. Discounting didn't help, either, as Halfords slashed prices to keep up with competitors. Despite strong performances from the car maintenance and car enhancement divisions, overall retail sales dipped 1.3 per cent compared with this time last year.

Sadly the last two months generally represents the 'peak season' for Halfords. In reaction, the group said it will overhaul and "refresh" its children's bikes and accessories - ahead of Christmas no doubt - and continue to improve staff training and customer service.

New boss Jill McDonald called the recent sales slump "disappointing" but said the latest numbers followed two years of very strong growth in the category. Ms McDonald also tried to dispel investors' concerns that consumers' enthusiasm for cycling is on the wane. In the long term, the board said it was confident that the cycling market will continue to grow, and Halfords with it.