Bike and car parts retailer Halfords said online revenue rose 15.9 per cent as it announced a three-year turnaround plan to revive sales.
Online and mobile sales reached 10.3 per cent of retail sales. Total sales at the retailer, which also owns car repair outlets Autocentres, edged up 1 per cent to £871 million. Profit fell 22 per cent to £72 million. The retailer introduced new site search capabilities during the year and has a 24 hour click and collect service.
The firm's shares plummeted after it said it would cut its dividend by 35 per cent and invest £100 million to revive sales by 2016.
The money will be used to refurbish stores, train staff, improve the supply chain and upgrade the web site. New chief executive Matt Davies wants to improve the retailer's ability to compete with supermarkets and online shops.
He said that younger customers are spending less on cars because of the rising cost of insurance. He is also concerned that 20 per cent of staff leave within three months and wants to halve that number.
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