Bike sales rise at Halfords despite Brexit profit slump
Trott and Wiggins effect creates a cycling boost for Halfords
Halfords has seen an increase in cycling sales over the summer despite an overall decline in the company's profits.
Cycling sales were up by 4.6 per cent in the six months to September, with an increase of 16 per cent in the final six weeks thanks to the success of Team GB's track cyclists at the Rio Olympics and better than expected weather at the end of summer.
>>> Halfords' pricing mistake almost lets people buy an £800 frame for a penny
The increase in sales can also be put down to the company's links with Laura Trott and Bradley Wiggins, both of whom now have branded bikes sold by the retailer. However, the increase was also driven by a "20 per cent off all bikes" promotion, which meant that cycling profits weren't up by a similar amount.
It was not quite as good a story across the company as whole, with profits down by a significant 15.7 per cent even as revenue rose by 6.3 per cent.
>>> Bike prices set to rise next year by as much as 15% following Brexit
Halfords blamed its falling profits on the falling value of the pound in the months since Britian voted to leave the EU, meaning that its costs had risen by £6m when buying from overseas suppliers.
Get The Leadout Newsletter
The latest race content, interviews, features, reviews and expert buying guides, direct to your inbox!
This is far from the first effect Brexit has had on the cycling industry, with Brompton announcing on Monday that it may soon have to increase prices for consumers if the Pound doesn't recover.
Thank you for reading 20 articles this month* Join now for unlimited access
Enjoy your first month for just £1 / $1 / €1
*Read 5 free articles per month without a subscription
Join now for unlimited access
Try first month for just £1 / $1 / €1
Henry Robertshaw began his time at Cycling Weekly working with the tech team, writing reviews, buying guides and appearing in videos advising on how to dress for the seasons. He later moved over to the news team, where his work focused on the professional peloton as well as legislation and provision for cycling. He's since moved his career in a new direction, with a role at the Department for Environment, Food and Rural Affairs.
-
Castelli Tempesta Lite review: great performance but at a price
Gore-tex Active Technology gives the Castelli Tempesta Lite impressive breathability and weather protection but the price will deter all but the most committed wet-weather riders
By Tim Russon Published
-
Bike subscription business to close due to 'escalating costs'
Buzzbike has operated in Manchester and London since 2016, but will halt its fleet this week
By Tom Davidson Published