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UPDATED: Halfords opens Cycle Republic store
4 Jan 2009
This article has 96 comments
UPDATE:
Latest updates since publishing this article on 27th October:
- Read a review of the Cycle Republic store in York by Retail Week
- Added a new photo of the York store
- A second Cycle Republic store has opened in Norwich
- Plenty of comments - see the end of the article
- Had massive interest in this article - lots of views from trade and public. This includes links to the article from cycling forums and blogs in and around York.
- A private discussion forum for Halfords staff called Halfords Voice is linking to the article - We would love to hear what Halfords staff think about this!
- Halfords have made a marketing mistake by not talking to us - our article now ranks No 1 in Google searches for "cycle republic york" and No 3 for "cycle republic". Probably not the best way to represent your new brand, and perfectly illustrates the power of the web in spreading news and ideas.
- We have also learned that a Cycle Republic website launches soon - and will aim to develop itself as an online social network via use of blogs, forums and ride lists. It will also offer online sales. In this context the "republic" brand clearly aims to define an online community of cyclists.
ORIGINAL ARTICLE:
Cycle Republic is Halfords' latest attempt at re-inventing the stand alone cycle store format and brand repositioning.
The new store opens in York on 31st October, located in a former Sofa Workshop site in the centre of the city.
Article continues below. View full size photo here
View full size photo here
After a number of years plugging ‘Bike Hut' and several re-inventions of the format the big H appears to have decided that they need a full scale revolution to capture more of the mid to high end bicycle market segment.
We take it that the word "Republic" and the revolutionary star icon is meant to suggest associations of a strident, vocal and vibrant independence (think Edinburgh Bicycle Co-Op) aligning this corporate retailer with Britain's new generation of urban cyclists. Hence no mention of Halfords anywhere in store!
The reality, as usual, is somewhat different. Halfords is Britain's largest corporate cycle retailer, and Cycle Republic is an attempt to grab market share from one of the last bastions of independent retail: your local independent specialist cycle retailer.
Whether or not the Republic will completely overthrow the Hut is still to be seen, and perhaps we may see different formats in different areas. Unfortunately nobody from Halfords wanted to tell us.
Halfords currently lists 6 standalone Bike Hut stores, with further concessions within the larger shed outlets. At launch 2 years ago Halfords suggested there could be room for 50 standalone Bike Hut stores nationwide.
Despite regular upbeat trading statements Halfords has failed to keep pace with the specialist cycle retail sector, and in their most recent update were performing 1.1% down on last year in the quarter to 26th September 2008. Clearly a sign that they are struggling as much as other large retailers to grow.
We were told earlier this year that the general economic down turn would give Halfords a boost as people sought to repair their cars to keep them running longer and would be cycling more, whilst also moving into new areas such as camping in an effort to increase efficiency in their oversized sheds. If all of this contributed to a decline in like-for-like sales how poorly has cycles been performing?
Halfords was the earliest adopter of the Government's Cycle to Work initiative and remains one of the lead providers of schemes aimed at ‘new cyclists'. Surely this growing phenomenon must be bolstering their like-for-like volumes even if the stores are suffering?
The problem might lie in the Bike Hut format itself. Early predictions of an aggressive roll out have come to nothing, with not only the numbers, but the strategy coming under scrutiny.
The format is still too formulaic and what might suit those cyclists wanting to challenge themselves on the Sussex downs doesn't necessarily suit the affluent families of London suburbs.
The challenges facing Halfords in the cycle market become more evident when compared with the performance of specialist cycle retailers in 2008. This has been another buoyant year for the independent cycle sector, with continuous healthy trading levels in May to September.
Recent analysis by ActSmart for ACT of over 250 independent cycle shops (representing £90 m retail sales) reflected a 25% sales increase in September 2008 vs. September 2007, despite the economic downturn and indifferent weather in the month.
ACT / ActSmart believes Halfords under values the size of the UK cycle retail market and therefore over-states their own market share. We believe this sector is worth over £850m in annual retail sales with significant growth continuing in the specialist sector. But maybe Halfords feels there is no need to consider cyclists outside of their own Republic.
On two occasions we asked Halfords for their input however nobody would comment.
Back to News MenuReader Comments (96)
Have to say, haven't had good service in any lbs in Dublin. Staff vary from spotty vacant youths to "enthusiasts" who couldn't be more bored with the more mundane requests and even then haven't done the job properly. So will buy a boardman bike at Halfords next time around as I will be buying purely on spec for the money.
paul, 16 Dec 2008
Oh my word your Halfords bashing is amusing, I am one of the lucky ones who live near one of the Bikehut only outlets and I can honestly say that I am happy to have them in my area, they can true wheels, they know their products, they are the enthusiasts that normal branches lack, yes if you go to a halfords you get a more generic member of staff but lets face it, in those outlets it's all about ripspeed and sat navs. Also, having a large chain means bigger supply so better turn around on parts so in the longrun lower prices?
Jay, 10 Dec 2008
Having worked for both Halfords and In a mid sized bike shop chain it was easy to spot Halfords failings at dealing with mid-high end bike and accs sales. That being said, With the right marketing strategy and the right people in these stores then its not going to be hard to change peoples minds about halfords.
Their brands are strong ( Kona, Gt, Boardman), admittedly they miss a good portion of niche and smaller things but Im sure a quick thinking buying department, fuelled by enthuisastic people in store supplying info will change this for the better.
The fact that there is little to no Halfords branding instore is a message in itself as to Halfords plans to eradicate their previous bad rep in higher end bike sales.
Staff is critical and previously Halfords have employed pretty generic folk. It was always a gem in rough ground finding an actual cycle enthusiast in a Halfords Bike Hut. Proper staffing is going to be critical to these republic stores just as it is with any other IBD.
I do not believe Halfords bully any smaller IBD at the moment and I cant imagine it happening in the future. With the right insight their republic stores will be almost non extinguishable from any other IBD other than the fact it has great backing( and probably better wages than IBDs) It will be adding another competitor admittedly but where's the fun in no competition :)
Fraser Ramsay, 21 Nov 2008
I work for an IBD myself, and also did a two year stint at halfords prior to this, and the fact ive been here for the past 5 years nearly goes to show which one i prefer as someone that lives/breathes/eats/sleeps bikes, but i say fair play from a corporate view, but on the more down to earth level, i think that its right to say that they really need to ensure that their staff situation is sorted first. Trying to give the impression of an IBD with staff that just arent as committed as say those that can be found in your local bike shop, just isn't the way forward for their projected target market!
Matthew Mellor, 20 Nov 2008
I couldnt agree more with the Ford/Porsche Scenario written by Cleveland cycles.Halfords will never have the Enthusiasum Ibd's have as most of the time, Staff who work in Ibd's are cyclists working for cyclists Specific needs! I enjoy talking to Cyclists and being able to fullfill their Cycling needs,it gives me job satisfaction! Being a very keen Cyclist myself,that's where its at for me!+ When you're Enthusiastic and have the Technical knowlege and ability to carry out the work that the customer is looking for you know you're offering a higher class of service than any Halfords will ever be able to offer! Hence the Ford/Porsche Scenario!
Scott Caygill, 18 Nov 2008
I welcome complaints about Halfords. We have much work and added sales from their dissatisfied customers . Whatever they are doing please encourage them to continue because the gap between adequacy and quality will grow wider than it is already. Their strategy is flawed, but even if it wasn't they are unable to execute. IBD's have got nothing to worry about - the consumer is not stupid.
stephen peters, 17 Nov 2008
'Merv' - I don't know where you get your ideas from ! ! Halfords charge upto 20% more for their wheels, tubes & many other spares than my shop does for the same (or inferior) product ! Add to that the lack of knowledge / skill of most of their supposed mechanics ......... every week we get several complaints from ex-customers of theirs = badly assembled (and dangerious) bikes + repairs where they've wrecked parts of a customers bikes - sheer incompetence STILL their Labour charges are quite cheap ! ! ! ! What you should bear in mind is this ....... Specialist Independent Bike shops are staffed & owned by people who really care about Cycling AND about looking after their customers ..... Where as Halfords is run by Execs who on the the whole don't know (or care) much about Cycling & Bikes (it's just a commodity) - they just care about volume sales + Profits + Shareholders Dividends & the Execs enormous Salaries !
Ian C, 17 Nov 2008
Unlike Halfords, cycle shop owner's tend to be enthusiasts, and not there just to generate income for shareholders. Halfords new stores may be keen to attract some of the niche brand cycle manufacturers and suppliers, but their reputation is backed up by caring dealers who give the brands commitment, not just in sales, but also in customer care, warranty and aftersales. These suppliers who choose to supply the dressed up Halfords "Cycle Republic" , should concern themselves of the long term effect it may have on their reputation, lets face it, you don't see Ford's in a Porsche showroom, nor would you find a Posche buyer wanting a Ford, it simply undermines the brand. IBD's also have a choice, who's bikes will you be selling?
Cleveland Cycles, 17 Nov 2008
i have been to the shop in york , just for inner tubes and the staff seemed very nervous and unknowledgable.However they are certainly trying to get upper market share with the top end custom bikes on show in the window, Rapha Condor/Kona to name 2, BUT i had no idea it was Halfords !!! they also give you 20% off accesories up to the end of the year.
nigel thompson, 17 Nov 2008
It's laughable that Halfords (of whom, can't true wheels and say a 1" tolerance in a buckled wheel is perfectly acceptable???!!!), try to make themselves look more "professional", har har! couldn't be more far from the truth.
I have 4 branches not far from me (sad, I know!), and none of them can do a "professional" job on their customer's purchases. I thought Toys 'R' Us (also not far from li'l ol' me!), were bad but bloody hell!, Halfords are getting worse than them!! lololol They need to have a Winter clean out (staffwise), before they add any extra "glam" to their already crappy service!
Ian Galloway, 17 Nov 2008
As a local cycle retailer in York I think the biggest challenge this new store presents is in terms of poaching good staff. Secondly I am concerned they may hit my accessory sales.
Spin, 17 Nov 2008
"small independent retailers in York are worried about is that they won't be able to get away with charging top whack for accessories and servicing any more" your having a laugh ? halfords are regularly a 5er above RRP for most things and the service is shocking , id much rather shop in my local IBD !
Terry, 15 Nov 2008
"Merv" - thanks for your comments however I feel i should point out that the article is not a review of the store itself but a look at the strategy and positioning within the market, and what the opening of this store means for the industry.
Mark @ ACT / ActSmart, 10 Nov 2008
It seems to me that what the small independent retailers in York are worried about is that they won't be able to get away with charging top whack for accessories and servicing any more. York NEEDS a city centre cycle shop only a stones throw from the site of Russells (remember that?). Anything that offers more choice and competition must be a good thing for the vast majority of cyclists. . There are many different types of cyclist and there is room in the market to cater for cyclists other than the cliquey lycra clad variety which these independents tend to cater for! As for doing a review of Cycle Republic before it has even opened - well, I need say no more. Draw your own conclusions as to who is getting on their high horse (or saddle) and why!
Merv, 7 Nov 2008
Poor Halfords executives must be suffering the Inferiority Complex. I would, if I was working for a supermarket:))
Bart, 4 Nov 2008
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Add a comment
Daily I get complaints adout Halfords in my shop over prices parts ect. and repairs not done correct, bad adivice and poor service, But the harder I work my sales have dropped by about 40%. the workshop is flatt out with work and it is hard to cope, most of my work and sales are low / mid end The big stores are bullying the small man, we don't require any more bid names
Trevor Halstead/ Church Street Cycles Gainsborough, 29 Oct 2008