Halfords sees cycling growth of 35% with continued strength in e-mobility

Halfords has reported cycling LFL growth of 35.4% in its Q3 trading update, covering the 13 weeks to 1st January 2021.

This was driven by continued strength in adult mechanical, e-bikes and e-scooters, despite global container shortages and port congestion impacting availability.

The retailer’s performance cycling business Tredz continued to see high levels of demand, growing 51.2% LFL over the quarter, indicating a high retention of customers from Cycle Republic which Halfords exited in March 2020.

Group service-related sales grew by 31%, with strong demand for motoring services and cycle repair mitigating the impact of lower traffic volumes. Halfords also reported group online growth of 76%.

B2B grew 44%, with ‘very strong growth’ in its Cycle to Work scheme supported by good growth in its fleet business, the retailer said. Halfords also saw improved cycling profitability and is on track to exceed its target of improving cycling gross margin by 300bps in FY21.

“We are pleased to have delivered a strong performance under hugely challenging circumstances, including our best ever Christmas week,” said Graham Stapleton, chief executive officer. “Despite a large reduction in traffic on the roads, our strategically important autocentres business saw significant growth, with particularly strong demand for the services of our growing fleet of Halfords Mobile Expert vans.

“We are currently carrying out over half a million services and repair jobs on cars and bikes each month, and therefore continue to play an essential role in keeping the UK moving during this pandemic. Throughout the crisis, we are privileged to have been able to offer free checks and discounts to 239,000 NHS workers, teachers and Armed Forces staff to help them keep their vehicles safe and roadworthy.

“The health and safety of our colleagues and customers remains our number one priority and I would like to offer my sincere thanks for their unwavering loyalty and support.”

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