COMMENT: What would Halfords want with a business like WiggleCRC?

According to reports, Halfords is looking to make its most notable cycle industry acquisition since it picked up online retailer Tredz and sister business Wheelies in 2016. That significant transaction proved that cycle and motor business Halfords has form for investing in online cycle retail heavy hitters as well as experience seemingly running such businesses largely separately.

Halfords was recently named in a number of reports as being in the market to buy troubled online retail giant WiggleCRC – other names have included Evans Cycles parent Frasers Group. Possibly Halfords didn’t start the year planning the (potential) significant acquisition, but WiggleCRC’s woes have deepened over the months. WiggleCRC was plunged into administration when the holding company behind its owner SIGNA Sports opted to withdraw the €150 million safety net.

Aside from opportunity, why would Halfords be interested in WiggleCRC? Halfords can probably afford to take a longer term view on the cycle market. Halfords earlier revealed that cycling is making up a smaller proportion of its business, arguably not much of a surprise in current troubled trading conditions. However, presumably with an eye on very positive mid to long term predictions for the cycle market – as momentum towards net zero and lower emissions continues to snowball (the current PM may wish to differ) – the opportunity for the market remains huge. Particularly if the industry can work out how to lure in ‘non-cyclist’ punters. Pundits in the pages of the magazine and online on Cycling Industry News have repeatedly pointed to the successes of the automotive market and looking at potential lessons that can be learnt, a point that might mean Halfords is in a strong position seeing as it has well-established feet in both markets.

Halfords previously said it would honour WiggleCRC warranties where possible, proving at least that Wiggle’s on its radar enough to issue a press release on the company . It remains to be seen how the future of WiggleCRC will play out, but Halfords isn’t quite the outlier some perceive it to be when it comes to boosting its market share through acquisition of online retailers.