(Adds background)
LONDON, Sept 8 (Reuters) - British bikes and car parts
retailer Halfords said on Wednesday disruption in the
global supply chain was dragging on its cycling business,
although it stuck to its targets and guided that it was
well-positioned to manage the challenge.
Halfords, Britain's largest cycling retailer, said it
expected the cycling supply chain issues, which include factory
production constraints, raw material inflation, freight
disruption and driver shortages, to continue for some time.
British retailers, cafes and restaurants are struggling to
cope with a shortage of drivers, and in particular heavy goods
vehicle (HGV) drivers, and food processing staff after COVID-19.
The problem is not unique to Britain - the United States and
other European countries also have truck driver shortages, while
across the world, there is also pressure on the wider supply
chain due to COVID-19 and a shortage of container vessels and
high raw material prices.
Halfords said on Wednesday that it was sticking to its
full-year target for pretax profit to come in at above 75
million pounds ($103 million), buoyed by higher sales in its
retail motoring arm, which were helped by the trend for
staycations this summer.
For the 20-week period to Aug. 20, Halfords said underlying
sales in cycling were down 23% compared to last year, although
it noted that last year was unusual due to the pandemic, while
sales for motoring products rose 52%.
Last year the company benefitted from a pick up in cycling
as Britons tried to avoid public transport due to COVID-19 and
bought or repaired bikes instead. Halfords said it remained
confident in the long-term outlook for the cycling market.
($1 = 0.7268 pounds)
(Reporting by Sarah Young; editing by Michael Holden)
Halfords (HFD)
