Halfords performs u-turn on bicycles

National car maintenance to bike retailer Halfords is to turn its stand-alone bike stores back into general Halfords following disappointing sales.

 National car maintenance to bike retailer Halfords is to turn its stand-alone bike stores back into general Halfords following disappointing sales.

The retailer says its Bikehut and Cycle Republic stores will either be rebranded Halford’s using its metro format or closed “where necessary” at a cost of £1.2m.

It revealed its plans today (April 16) after reporting a 3% drop in group sales in the 13 weeks to March 27 compared to the same period last year. It says its superstore format and online sales have cannibalised sales at its bike stores, which means it believes the format won’t deliver “the absolute levels of financial return demanded of Halford’s investments”.

The retailer says it has begun a programme to reduce costs by £10m and will focus on investing in its store portfolio, cost control, extending its range and service offer and driving its “multichannel” sales.

Chief executive David Wild says the group will now focus on expansion into central Europe and “multi-channel activity” as areas “that are generating significant sales growth.”

The consolidation of its bike stores marks a return to the retailer’s original strategy of offering all its ranges under one roof.

Recommended

Highland Spring plots to topple Evian as UK’s No.1

Marketing Week

Highland Spring is rolling out an aggressive strategy to steal the top spot as the UK’s biggest selling bottled water brand from Evian within the next two years, as it readies the launch of a new brand campaign next month. Currently, Highland Spring holds a brand volume share of 8.6% in the bottled water market, […]

Mindshare and JWT win Egyptian Tourism account

Marketing Week

The Egyptian Tourism Authority has handed its global media planning and buying account to Mindshare and its advertising to JWT. The business is believed to be worth about £1.6 million in the UK and £35 million globally. Media is currently handled by OMD and advertising by DDB handled the advertising. The country positions as a […]

Comments

    Leave a comment

    Close

    Discover even more as a subscriber


    This article is available for subscribers only.

    Sign up now for your access-all-areas pass.

    If you're an existing paid print subscriber find out how to get access here.

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now

    Got a question?

    Contact us on +44 (0)20 7292 3703 or email customerservices@marketingweek.com

    If you are looking for our Jobs site, please click here

    Subscribers enjoy unlimited access to unrivalled coverage of the biggest issues in marketing, alongside practical advice from the digital experts at Econsultancy.

    With a subscription to Marketing Week Premium you will get full access to:

    > World-renowned columnists

    > Analysis & case studies

    > Exclusive leading-edge insight

    > Carefully curated reports & briefings from Econsultancy

    > Plus, much more including a £300 discount for the Festival of Marketing

    Subscribe now