Halfords’ Q3 results see retail cycle sales up while e-commerce grows 27%

Halfords’ Q3 results have today revealed cycling sales rose by nearly 6% like-for-like during the period (14 weeks to 3rd January 2020), with growth broadly based across the bike categories, while group revenue saw a 4.6% increase.

Halfords attributed the increased retail cycling sales to its work to optimise the cycling space in its stores with a ‘more innovative and differentiated range’ in a bid to create a better shopping experience for its customers during the peak holiday period.

Meanwhile, group online sales grew 27% with around 80% of Halfords orders collected in store indicating the increasing demand from consumers for click and collect models, online retail and e-commerce platforms.

Halfords’ new web platform remains on track to launch in Q4, which the group hopes will improve the digital experience for customers and allow them to access an integrated services offer across stores, garages and mobile through one website.

B2B seems to continue to be a big focus for the group, with sales growth accelerating in Q3 by over a third (32%) year-on-year and now accounting for 16% of total Group sales.

“I am pleased with our overall performance in Q3, with total revenue growing nearly 5% in the quarter,” said Graham Stapleton, Halfords CEO. “Within retail, cycling performed particularly well, as customers responded to our innovative product ranges and differentiated proposition.

“Approximately 85% of our bike range is unique to Halfords, including our successful partnership with Disney and the development of an innovative range with Trunki, both of which helped to sell a record number of kids bikes in the period. In addition, our ability to provide customers with a unique, free,build and storage offer was met with strong demand, as we built 86,000 bikes in the week before Christmas.”

Halfords has reaffirmed its full year profit guidance of £50-55 million.

This will be welcome news for the retailer after a rather lack-lustre start to the year. Cycling sales grew for Halfords in its half year results (the 26 weeks to 27 September 2019), but overall like-for-like revenue fell for the retailer, citing weak consumer confidence, with the Group also hinting at a greater emphasis on service over product sales in its future. Prior to that, a middling summer mixed with an uncertain economic environment seemed to take their toll on Halfords’ 20 week financials, which saw cycling and overall performance decline.