Halfords pilots second bike fascia to grow shopper base

Two Cycle Republic stores have opened in Norwich and York. Unlike Bike Hut, which shares its name with Halfords’ in-store bike department, the new fascia and interior carries no reference to anything found in the parent brand’s branches.

The retailer believes Cycle Republic has the potential to attract shoppers who would normally visit independent cycle shops in preference to
big chains.

As well as new branding, the Cycle Republic stores have a remodelled layout, a new graphics package and handwritten point of sale.
If the trial is successful, a Halfords spokeswoman said there was potential for at least 50 Cycle Republic stores in the UK.

She said: “Bike Hut is still very recognisable as part of Halfords, but most people who go to Cycle Republic wouldn’t recognise it as part of Halfords.”

Seymour Pierce analyst Freddie George said: “Reading between the lines, what’s happened is that they haven’t got the uplift from Bike Hut that they were expecting. I think if this doesn’t work for them you can expect the standalone Bike Hut stores to be closed down.” At present there are four Bike Hut shops.

The increased use of cycles for leisure, health and commuting has made the category a growth area for Halfords, chief executive David Wild said at last week’s interims.

Halfords posted a 3.2 per cent rise in interim pre-tax profits to£49.1 million on sales 1.6 per cent ahead at £407.1 million.

The retailer is to make 250 job cuts at its head office and in stores as it seeks to contain costs and ride the trading downturn. Up to 200 store staff are in consultation with the retailer as well as 50 head office employees. Wild said: “There’s never been a more important time to look at cost control.”