Halfords has announced plans to focus on electric bikes.
The group is focusing on a back-to-basics turnaround plan, which will mean scaling back on camping equipment and power tools to focus on bike and motoring.
“Customer behaviours and the competitive environment are changing and we face an increasing number of headwinds,” said Halfords’ chief executive, Graham Stapleton who replaced Jill McDonald in January.
“Our new long-term strategy means we will become far more focused on the categories we are best known for, motoring and cycling.”
Reports emerged this week that the strategic focus on electric bikes links to the group’s bids for Evans Cycles.
Evans Cycles has received an approach from Halfords as it attempts to fill the multi-million-pound cash hole.
Evans, which is owned by private equity house ECI Partners, is hoping to secure a £10 million rescue package.
The group generated a £17.4 million loss before tax in the year to October 2017.
Former Halfords boss McDonald was poached by Marks & Spencer (LON: MKS) earlier this year.
David Jeary, a retail analyst at Canaccord Genuity, said: “This is an interesting appointment from an M&S perspective, since Jill McDonald, whose prior roles include long stints at McDonald’s and BA, cannot be seen as a clothing expert. What she does bring is considerable experience in marketing and customer relationship management, which have become even greater areas of focus under Steve Rowe’s tenure.”
Shares in Halfords (LON: HFD) are down 8.58 percent at 307,00 (1656GMT).