Bikes shortage as we ride out crisis
HALFORDS has warned it faces “acute” difficulties securing supplies of bikes.
Soaring demand has come as the pandemic has hit manufacturers, leading to a shortage.
Researcher Mintel found Britons bought three million bikes last year, up 22 per cent on 2019. And 42 per cent of cyclists plan to buy a bike in the next 12 months.
Halfords said: “Supply challenges for cycling products remain acute and a return to normal trading patterns remains highly uncertain.”
The company meanwhile reported bumper annual results yesterday. Sales rose nearly 14 per cent to almost £1.3billion in the year to the start of April, with profits soaring by 72 per cent to £96.3million.
The performance was helped by an almost doubling in demand for electric bicycles and scooters in the pandemic.
Along with a 54 per cent leap in cycle sales, Halfords Autocentres enjoyed a 9.7 per cent rise in revenues.
The business is to train more than 2,000 staff to service electric cars, bikes and scooters.
Chief executive Graham Stapleton said: “Demand for our services remains strong in the new financial year.”
Susannah Streeter, an analyst at Hargreaves Lansdown, said: “The new trend of swapping four wheels for two isn’t likely to be reversed as more people returning to work adopt cycling for the commute.”
Halfords has resumed dividends, paying a full-year 9p per share. Bosses say they also plan to spend up to £60million on making Halfords a more service-led business.