Car and bike parts retailer Halfords is in top gear, having seen full year sales, in both its car and cycle businesses, so strong that it has recorded a turnover that has surpassed the £1bn mark.
Over the last 18 months, shares have plateaud as the boost that cycling received in the UK following the London 2012 Olympics subsided. The company, which recently recruited Jill McDonald from Mcdonalds as its new CEO, saw like-for-like sales growth at its retail stores, which grew 7% to £875.1m. Cycling proved to be the big business for the retailer, with an 11.4% rise in sales occurring during the year. Halfords also grew its online division with a 14.3% growth, increasing sales to over £100m.
Halfords is expected to undergo a review of its 465 store estate, which is mostly centred on retail parks. The company added that its retail operating costs would increase by 4-5%as it continued to invest in key areas of the business.
Commenting on the results, Chairman Dennis Millard said:
“There still remains much to do in both retail and autocentres and 2016 will be a particularly busy year of activity and investment as we continue to focus on driving the top-line.”