Halfords has significantly revised down profit forecasts after wet weather and discounts affected sales.

It’s the latest sign of the negative impact of rain and unseasonably high temperatures on the retail sector, the biggest area where money is spent in the UK economy.

Money latest: Bitcoin spikes 10% in single day as rare event looms

The weather affected the number of people coming into shops – as well as sales of winter car products and car cleaning items.

Halfords also said it had been hit by low customer confidence, meaning people are less willing to spend money.

There was a “significant” fall in sales across a range of categories, Halfords said in a trading update.

The number of car items bought in January fell 5.1 percentage points, cycling sales dropped 8 percentage points, while tyre purchases were down 4.3 percentage points.

Predator Elliott returns with £750m bid for electricals chain Currys

‘Moral obligation to take action’: Iceland to cut Little Steps baby formula price

The Body Shop to shut almost half of its UK stores – as seven just closed their doors for good

More discounts and promotions have meant the cycling market has become “more challenging and competitive”, Halfords said.

Please use Chrome browser for a more accessible video player

Customers are increasingly purchasing on credit, which is leading to lower margins on the sale of bikes and cycling goods than previously anticipated.

As a result, profit expectations before tax were revised downwards to the £35m to £40m range for the full year, compared with the previous forecast of £48m to £53m.

Be the first to get Breaking News

Install the Sky News app for free

Wet weather is the main reason retail sales volumes have fallen in the past year.

Retailers were hit by record rainfall in some parts of the country in July, while November spending fell to COVID-19 lockdown levels.

Low activity in this economic metric played a part in the UK entering recession.

Related posts:

Train and bus operators will no longer enforce mask wearing in England from 19 July One in five hospitality and retail workers self-isolating, MPs told Heathrow warns on investment as regulator eyes reduction in passenger charges Rolls-Royce pay award to avert strikes, retail sales fall and mince pie maker deals with soaring costs Goldman lures ex-Bank of England chief as international chair Disgraced crypto boss ‘donated stolen customer funds to politicians’ Russia hikes interest rates as rouble plummets Next lines up £100m FatFace in latest high street takeover deal Caramac bars to be discontinued after more than 60 years Sainsbury’s can’t rule out job losses amid new focus for stores Housing, jewellery and wind turbines What the merger of two major housebuilders could mean for homes being delivered across the UK