Since the London Olympic Games and the ensuing furore over the summer of sport that followed, sporting retailers have enjoyed a huge amount of success as British consumers up their spending to grab themselves a piece of the action. This has seen bicycle and car parts retailer Halfords benefit in the form of increased sales and profits, to the extent that the chain has now been able to acquire high end bicycle brand Boardman Bikes Ltd for £20 million.
Although Halfords already stocks Boardman branded bicycles in the majority of its UK stores, the acquisition will allow the retailer to retain a larger percentage of the overheads from each sale. This will surely play into the retailers hands with the upcoming Tour de France, with economists predicting that the three week event which starts in Yorkshire will further fuel the public’s desire to get involved in the sport.
Boardman Bikes Ltd is the brainchild of Olympic gold medallist and Tour de France veteran Chris Boardman who established the firm in conjunction with Greek engineer Dimitris Katsanis. He will remain heavily involved in the running of the company in his position as chairman and design director, ensuring that the firm’s reputation for quality through the carbon fibre composition of its racing bikes will remain intact.
Upon the completion of the deal, Mr Boardman said; “We look forward to building on the success we have had to date with independent retailers, in international markets and with Halfords.
“This step will take the brand to the next level and their backing will allow us to further develop our research and development and extend our award-winning cycling ranges.”
The deal is almost certain to boost profits at Halfords considerably, adding to the firm’s already established success in the bicycle market. During the past financial year Halfords recorded a 6.5 per cent increase in like for like sales, largely due to the popularity of its cycling ranges, with annual pre-tax profits rising by 2.3 per cent to £72.6 million.
What’s more, a recent study by the London School of Economics (LSE) indicates that this upward momentum is set to rise, with analysts now believing that cycling contributes a total of £2.9 billion per annum to the national economy. Around £51 million worth of bicycles sold in the UK each year are manufactured domestically, and with sales increasing by an average of 28 per cent year on year, this holds positive indicators for firms on all levels of the supply chain.
Halfords chief executive Matt Davies says; “Our investment in Boardman Bikes, which have been ridden by multiple Olympic and world champions, demonstrates our growing position as a specialist cycling retailer.
“We have worked with Chris and his team since 2007; they have created one of the most important, fastest growing and successful brands in UK cycling.
“We look forward to a continuation of the growth that both Boardman and Halfords have enjoyed with such a strong brand.”
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