Halfords eyes Rio Olympics 2016 boost after cycling sales fall

Halfords is pinning its hopes on the Olympics to revive cycling sales, which slid 4% after the soggy start to the summer.

Chief executive Jill McDonald said there had been good sales growth in premium bikes in the three months to July 1, but the early Easter and the downpours in April and late June had put people off buying other bikes and accessories.

Cycling’s weakness offset motoring and autocentres’ sales growth of 0.6% and 3.1%, Group like-for-like sales fell 0.6%. Halfords has launched ranges with gold medal winners Laura Trott and Sir Bradley Wiggins in time for the Games in Rio de Janeiro, which McDonald expects to renew interest in the sport.

“We are very well placed with the credibility of our ranges. Hopefully we’ll see a lot of British success replicated this year,” she said.

McDonald also warned there could be a further impact from the pound’s weakness versus the dollar on top of the £3 million hit it took earlier this year. She said Halfords was talking to suppliers to help mitigate the costs and could later look at prices and cost savings.

The company could, however, benefit from more Brexit-induced ‘staycations’ through sales of roof boxes and camping equipment, she added.