Halfords has released its trading update for the 20-week period to 21st August, with cycling like-for-like revenue up 59.1%.
There was growth across all product categories, the retailer said, with an increase of 76% in Halfords’ performance cycling business, Tredz. Sales of new products were up 114% in the period, with the new Carrera range a “notable highlight”.
Chief executive officer Graham Stapleton said sales of electric bikes and scooters were up 230% year-on-year.
The retailer has also delivered growth in cycling services, up 17.5% in the 20-week period, boosted by its free 32-point bike check and the Government’s Fix your Bike Voucher scheme.
“This 20-week trading period started on 4th April and therefore coincides with the most significant impacts of COVID-19 in the UK,” said Stapleton. “Our number one priority has always been the health, safety and wellbeing of our colleagues and customers, and on behalf of our Board, I would like to express my sincere gratitude to our dedicated colleagues and loyal customers for their support and patience during such a challenging time.
“We are pleased to have delivered a strong trading performance during the period. We have been able to move quickly in order to capitalise on the continued strong demand for cycling products, with sales of electric bikes and scooters up 230% year-on-year, while cycling services have been boosted by our free 32-point bike check and the Government’s Fix your Bike Voucher scheme. We have also seen a return to growth in our motoring business, driven by an increase in car journeys and by a high level of demand for staycation-related products such as roof bars and roof boxes.
“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. 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.
“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.”
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