Weekly Retail & Leisure News - 07 September, 2015
Halfords announced a slowdown in Q2 trading last week, with
LFLs down by 1.3%. The retailer has been hit by a wobble in bicycle sales after
bad weather turned Britain’s cyclists off buying new bikes, in addition to
discounting across the sector. LFL sales were down 11% in its cycling division
in the eight weeks to August 28. While Halfords’ results are clearly
disappointing, there are significant long term opportunities in the cycling
market, especially as the retailer boasts a balanced product coverage for
The Co-operative Group has reported half-year profits of
£36m, in the six months to July 4. The group's core convenience business
increased LFL sales by 3.3% while its total food business grew by 0.8%,
reflecting the tough trading environment. The Co-operative Group wants to
offload up to 300 of its larger supermarket stores but chief executive, Richard
Pennycook, said that this would not be dumped in one asset package and expected
to spend “many years working them out into the market when we can see a good
In other news, Poundland is taking the plunge
into online retail with the launch of a trial e-commerce site offering around
2,000 products to UK customers. Customers will be charged a £4 delivery fee per
order, except for orders over £50 which will be free. This shows the continued
evolution of the rapidly growing UK online market, and follows Poundworld’s
e-commerce launch in April this year. The move by fixed price discounters into
the e-commerce space may increase the pressure on the supermarkets, as the wide
product ranges of discounters become available to customers online.
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Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
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