The attempt to muscle in on the mid- to high-end market with an IBD-apeing retail format - Bikehut - appears to have been put on hold as Halfords instead makes a push to be known as the place to get cheap bikes.
The Xmas campaign will major on bikes at £79.99.
A bike trade exec involved in the volume end of the market, but who doesn't supply Halfords, said:
"Any fool is able to buy nearly assembled bikes from the Far East for thirty five quid and then sell them for eighty. The next logical step is to get the price down to £25 a bike but then the market's going to get very silly."
With Halfords pulling away from IBD territory, it's coming up against the likes of JJB and Toys R Us.
Toys R Us is trying to ramp up its presence in the bike market. TRU was recently approved as a candidate for membership to the Bicycle Association of GB and could soon become a member. Suppliers to TRU said the chain's execs are looking forward to a fight with Halfords.
Last week Halfords lost a key bike sourcer, Dave Webster, who left to join the agricultural supplies trade.