Halfords battered by weather and economic gloom
AUTOMOTIVE and leisure retailer Halfords has seen a slump in revenue in its shops as the poor economic backdrop and inclement weather have had a significant impact on the sale of items such as bikes.
However, on a more positive note, it has seen but a marked increase in trade in its Autocentres car repairs business.
In an interim management statement covering the 13 week period to June 29, the Redditch-based firm revealed total revenue was down by 5.2%. Its retail business saw revenue decline by 7.8% but its Autocentres arm saw revenue increase by 14.5%.
Poor weather conditions have had a marked impact on sales of leisure items. Cycling revenues, for example, were down 9.6%.
Dennis Millard, interim executive chairman, said: “The consumer environment remains difficult and the unseasonal weather conditions this quarter had a direct impact on sales of cycles and outdoor leisure products.
“In this challenging economic environment the management team will be focused on maximising our trading performance and cash generation, prudent cost management and delivering the longer-term strategy outlined to shareholders in May 2012.”
Halfords’ Autocentres business saw further strong growth in revenue and market share.
Tyre fitting now represents in excess of 10% of Autocentre revenues.
Meanwhile Halfords has announced that David Wild is stepping down as CEO after four years in the role.
Wild said: “I have enjoyed my time at Halfords and feel we have accomplished a great deal during my tenure as CEO. Now that we have developed the overall strategy that will guide the future of the business over the coming years I feel it is the appropriate time to step down and seek fresh challenges elsewhere.”
