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>From the Indie
http://news.independent.co.uk/business/news/article753738.ece
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Halfords to open bicycle-only chain
By Susie Mesure, Retail Correspondent
Published: 09 June 2006
Halfords, which sells one in three UK bicycles, is to tap into the
cycling revolution on Britain's roads by launching a chain of dedicated
bike shops under its Bikehut brand.
Aggressive expansion plans unveiled yesterday with flat full-year
profits revealed the retailer is moving beyond the UK and Ireland for
the first time, with stores in the Czech Republic.
It is following the supermarkets and opening smaller convenience, or
"neighbourhood", stores in the UK. It has 10 smaller 5,000 sq ft stores
so far and sees scope for a further 60. It will open 150 stores in the
UK and Ireland in the next seven to eight years in addition to the 408
it currently has.
Ian McLeod, the chief executive, said Halfords was testing the eastern
European market because there were plenty of old cars that needed spare
parts, plus car ownership was high.
Last year, booming sales of in-car technologies hit profits because
they are lower margin than products such as oil filters. Pre-tax
profits rose 2 per cent to £77m after the gross margin fell by 260
basis points.
Mr McLeod said underlying sales had risen 3.2 per cent since the start
of its new financial year, excluding the boost from Easter. He also
announced plans to buy back £50m of shares over the next two years
END
http://news.independent.co.uk/business/news/article753738.ece
Discuss.
BEGIN
Halfords to open bicycle-only chain
By Susie Mesure, Retail Correspondent
Published: 09 June 2006
Halfords, which sells one in three UK bicycles, is to tap into the
cycling revolution on Britain's roads by launching a chain of dedicated
bike shops under its Bikehut brand.
Aggressive expansion plans unveiled yesterday with flat full-year
profits revealed the retailer is moving beyond the UK and Ireland for
the first time, with stores in the Czech Republic.
It is following the supermarkets and opening smaller convenience, or
"neighbourhood", stores in the UK. It has 10 smaller 5,000 sq ft stores
so far and sees scope for a further 60. It will open 150 stores in the
UK and Ireland in the next seven to eight years in addition to the 408
it currently has.
Ian McLeod, the chief executive, said Halfords was testing the eastern
European market because there were plenty of old cars that needed spare
parts, plus car ownership was high.
Last year, booming sales of in-car technologies hit profits because
they are lower margin than products such as oil filters. Pre-tax
profits rose 2 per cent to £77m after the gross margin fell by 260
basis points.
Mr McLeod said underlying sales had risen 3.2 per cent since the start
of its new financial year, excluding the boost from Easter. He also
announced plans to buy back £50m of shares over the next two years
END