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Halfords disappointed by recent sales as profits drop

(13 posts)
  • Started 12 years ago by crowriver
  • Latest reply from crowriver

  1. crowriver
    Member

    So much for the "cycling boom".

    Halfords disappointed by recent sales as profits drop

    By GARETH MACKIE
    Published on Thursday 31 May 2012 09:43

    Car parts and leisure goods retailer Halfords today said sales since the start of its new financial year have been “very disappointing” as it unveiled a 26.6 per cent drop in annual profits.

    Chief executive David Wild said the group had not seen the usual seasonal demand for cycling and outdoor products since the end of March, but added: “We believe some of these sales are deferred rather than cancelled, and we expect a stronger performance from these categories as the year progresses.”

    http://www.scotsman.com/business/halfords-disappointed-by-recent-sales-as-profits-drop-1-2329129

    Posted 12 years ago #

  2. thebikechain
    Member

    I had a funny conversation with them earlier today on the phone.

    They were asking me to consider dropping the c2w admin charge we levy as they take 15% of the transaction value from us.

    We said we would if they came down to 10% but 'they have shareholders to satisfy and a business target'.

    Hmmm. OK so i have to bend over but they won't... ok.

    Posted 12 years ago #

  3. Claggy Cog
    Member

    Really crap weather won't have helped, people prefer to cycle in dry, sunny conditions, as we know. Don't know if this is nationwide or Scotland but here in Edinburgh they now have competition, with a very large outlet in West Edinburgh.

    Posted 12 years ago #

  4. Kenny
    Member

    Which outlet is that, out of interest?

    Posted 12 years ago #

  5. Nelly
    Member

    I think claggy clog speaks of Decathlon, french purveyors of every sports equipment imaginable - including bikes.

    Or perhaps Evans, which just feels like a shed.

    Halfrauds can bog off as far as I am concerned, I ride within 20 yards of one every day, but why would I go in? Bike shops need staff who know bikes, and actually have a clue, and rather sadly if I have to tell them how things work, somethings wrong. Our C2W is with them, and I have never been tempted. If buying new, would rather keep a LBS in business, thanks.

    Its not like they are uber cheap either (unlike decathlon, which has no pretentions as being a specialist retailer).

    Posted 12 years ago #

  6. cc
    Member

    Apart from Halfords' own reputation as a bike shop, and whether or not money is being spent on cycling in general, there's the wider economy to consider. My brother in law tells me that economic activity in his part of east Yorkshire has more or less entirely ceased, apart from essentials. Long established firms which are never short of work have had none for months, he says.

    Posted 12 years ago #

  7. thebikechain
    Member

    Our bike sales are up which is good - however it is not in the areas i would have thought/planned as we have been let down massively by a supplier meaning we have to now establish what we do with them going forward.

    Spent the past year working on the overhead and got it dialled down to make the most of the turnover we do and it's actually been quite an interesting exercise.

    Sales on the whole are trending upwards slowly though so not as gloomy as some would suggest but people are changing what they spend on and how much obviously.

    Posted 12 years ago #

  8. Kenny
    Member

    I wondered if you meant Decathlon. I went in once and exited as soon as possible. They seem to be after the low end of the market; all their goods that I saw were very cheap and thus of poor quality.

    As for Halfords, I can't disagree that they have some staff who don't know much about bikes, but the one at Hermiston Gait also has staff who do know what they are talking about, to be fair. You just need to be bold and tell them you want to speak to the bike experts. Not that they are experts, but for your average man on the street, they do know their stuff AFAIAC.

    Posted 12 years ago #

  9. Tom
    Member

    I know it's all just transport but Halfords bike department does feel a bit odd; like looking through a hunting shop to find the bird-watching kit.

    Posted 12 years ago #

  10. kaputnik
    Moderator

    I think Halfords will suffer from the trinity of Tesco (etc.) selling very cheap bikes and cycling accessories, Decathlon doing a wide range of budget and not-so-budget bikes and accessories and of course Evans. They dont really compete on price with the first 2 and on selection and quality / market sector with the latter.

    Perhaps they'll be the next Woolworths?

    Posted 12 years ago #

  11. Zenfrozt
    Member

    Decathlon depends largely on what you are looking for. I bought my 3 man tent from there and it has lasted through 3 festivals quite happily.

    Posted 12 years ago #

  12. Claggy Cog
    Member

    I was talking about Decathlon, which appear to sell about the same quality of bikes as Halfords.

    I agree with Tom, it is a bit weird in Halfords, with the bike section being very small, at the back, and everything automotive usually at the front and in your face and taking up three-quarters of the stores.

    I wonder if Halfords car accessories sales are down too, as it seemed last year that their bike sales were sort of carrying the business and boosting their profits. Also a great many companies have made bike to work schemes far less attractive to cyclists, or even got rid of them altogether, who might have used Halfords.

    Posted 12 years ago #

  13. crowriver
    Member

    Also a great many companies have made bike to work schemes far less attractive to cyclists, or even got rid of them altogether, who might have used Halfords.

    I think this may be a factor. My employer has discontinued c2w since the rule changes.

    Posted 12 years ago #

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