Independent shops shrug off Halfords bid for the premium cycle market

Halfords is set to more than double its offering of premium bikes in an attempt to take advantage of the growth in the premium cycle market, the retailer has announced.

It will increase the number of premium mechanical road bikes it offers by 60%, and the number of premium electric bikes by a whopping 300%.

This end of the market, says the retailer, is seeing the biggest growth.

The new non-electric machines it will be stocking imminently are headed up by Boardman, which has been owned by Halfords since 2014, with bikes such as the £2,100 Boardman TRVL adventure bike, and the ADV 9.6 carbon gravel bike, equipped with Shimano GRX Di2, available to buy.

With enthusiasts these days regularly forking out between £3,000 and £4,000 (and frequently much more than that), Halfords' £1,000-plus benchmark for the premium market will look a little low in many eyes.

However, says Halfords head of cycling Kate Begley: "The new range of bikes from Halfords is a clear statement of intent to the premium cycling market.

"It’s one of the fastest growing sectors but one which was underrepresented at Halfords. But now that is changing and significantly so."

Cycling Weekly spoke to numerous independent shops, none of whom seemed particularly concerned about Halfords's latest move.

"I don't think so," said Jon Williams, owner of Fred Williams Cycles in Wolverhampton, when asked if independents will be worried.

"I guess the brands that they have access to is where it could affect other shops," he said. "If they pick up some brands that independents are stocking, then they've obviously got more clout and more marketing and more advertising and things that they can do with those brands."

But he said that in his experience, Halfords staff lacked expertise when it came to high-value cycling sales.

Adam Cross is the brand development manager at Paul's Cycles in Dereham, Norfolk, which has Halfords as a close neighbour.

"We often tell people, oh, we're behind Halfords," he said, "because you can see Halfords from the roadside and you can't, you know, we're sort of behind it. I can't see [Halfords' latest move] having any impact on us.

For those looking to spend a bit more money on a bike, Cross said, "It's not their first bike… particularly their first road bike. So chances are they've got some knowledge, some experience, some sort of awareness of trends, models and that sort of thing.

"I don't think that they would see Halfords as the place to go and get their new, second or third road bike down the line. I can't see that making a big impression on established bike shops," he added.

Gordon Fletcher, associate dean of research and innovation at Salford Business School told Cycling Weekly that smaller shops should not underestimate Halfords' clout when it came to offering a familiar brand with a wide-ranging network.

"While the independents tend to be positioned towards the serious and top end of the market they also rely on strong word of mouth marketing as well as returns and referrals from satisfied customers," he said. "Halfords crashes into this space with the promise of a network for support which can be important for commuters and serious leisure users alike."

He added: "High end products coupled with the reassurance of a high street brand will be an attractive combination for many consumers," and pointed out that Halfords had a strong ability to analyse the market and target offerings in the way that independents could not.