Since January of this year, Halfords has seen a drop in sales of bicycle and car accessories, but are hopeful that the Olympics will boost their cycle market, especially with the relaxed trading hours.
Sales were down 2.3 per cent on 30 March 2012 when compared to the same time last year. However, the company is optimistic for 2012-13, expecting per-tax profits to be in the region of £90 million and sales of approximately £861 million. These figures are helped by the staging of the London Games this summer. In a statement, Halfords said: “We also anticipate a particularly buoyant, albeit competitive, cycling market this year given the strong interest in Team GB at the Olympics.”
Speaking of the company’s performance, David Wild, Chief Executive Officer (CEO), stated: “We are pleased that at a challenging time for motorists, they are increasingly turning to Halfords for their diverse after-care needs.”
However, Halfords’ growth plans were not dampened by the drop in sales this year. The company is planning to open 30 new commercial properties in 2013-14, as the company said in a statement: “FY13 will see continued investment in building brand awareness in addition to the roll out of up to 30 new centres.”
Mr Wild added: “The UK consumer outlook for FY13 is uncertain and the continued rise in fuel prices remains a concern. Our actions have reduced input-cost inflation, but retailers face a rise in operating costs.
“The strong performance from our growth areas provides an attractive route to strengthen our business. We are investing to drive our strong brand even further by developing our fitting resources, increasing marketing and enhancing our multichannel offer.
“Investing in these opportunities will accelerate the evolution of Halfords from a traditional retailer to a contemporary provider of products and services, and will contribute future growth.”
Do you think Halfords will follow the GAME route, or do you think the retailer will continue to grow and thrive?
