Halfords to close its central European operation
Bike and car parts firm withdraws to home shores
While Halfords continues to turn a healthy profit in this country, it seems that Europe hasn't quite bought into the inexpensive bikes market – the company has decided to close down its seven stores in the Czech Republic and Poland this summer.
The central European arm of Halfords posted an operational loss, so the stores will close and the operation will shrink back to its British base.
Which may not be an entirely bad thing for the company, because they've noticed a hike in profits since the wintry weather heralded in a demand for car parts.
Chief Executive of Halfords David Wild said pulling out of Europe was necessary.
“With sustained growth expected from the UK retail business and the domestic focus of the group’s acquisition strategy, we have decided to close our seven stores in central Europe,” he said.
“Recent performance has improved and the region has long-term attractive characteristics, but the continuing recession is severely limiting the property opportunity to move the operation to a viable scale.”