Disappointing results for sports and leisure retailer Tandem

Designer and retailer of sports and leisure equipment Tandem, has seen a disappointing first half of the year with trading 31% behind last year.

The firm says customers have continued to cancel and delay orders which has meant the current order book of £10m is well behind compared to £35.4m this time last year, which is more in line with levels seen at the same point in 2020 when they were £10.8m.

Both national retailer and independent dealer bicycle sales were down during the period to 17 June 2022, with the division turnover 55% behind that of the prior period.

During 2020 and 2021 the bicycles division had benefitted from unprecedented demand that COVID-19 lockdowns created. That demand has now diminished and Tandem says it’s left with higher stock levels than we would like against a backdrop of overstocked customers.

It will address this over the remainder of the year with a number of promotions and special offers.
 
In eMobility Tandem is experiencing similarly disappointing results, with turnover in this segment down 26% compared to the prior year, but still 90% up on the comparative period in 2020.

The firm says it believes this area of the business has the largest upside potential for the group, and investment is continuing in this area in order to best take advantage of the changing landscape of transport habits in favour of electrically powered modes of transport.
 
Tandem’s home & garden division has also seen a decline, with online shopping habits changing seen since COVID-19 times, and discretionary spending power reducing due to the cost of living crisis.

Home & garden revenue is 56% lower than that of the comparative period, but Tandem will continue to invest in this area of the business because it still sees good potential to grow in the future as it introduces new product ranges.