Halfords, the car parts retailer, has chosen Brighton to launch a chain of specialist bicycle shops to take advantage of a growing enthusiasm for pedal power.

The shops will be called Bikehut and will be aimed solely at cycling enthusiasts, selling protective clothing, accessories and a wider range of bikes.

Halfords hopes to open the first in Brighton this autumn. If successful, the format will be rolled out nationwide.

Chief executive Ian McLeod said: "We intend to trial two or three outlets in the South East to see how it goes. We've invested in training staff to handle repairs, maintenance and sales."

Halfords already sells one in three bikes in the UK. Bikehut already exists as a subbrand in 300 of Halford's 420 stores.

Travelling to work by bike is becoming increasingly popular and Mr McLeod said the main reasons were people wanting to escape commuting or keep fit The Government's Cycle2work scheme allows employers to loan cycles and safety equipment to staff as a tax-free benefit and offer staff cut-price bikes.

Employers were put off because of the administration but a simpler version was launched this month. It allows basic-rate taxpayers 40 per cent off the cost of a bike and higher-rate taxpayers 50 per cent when they use the bike to get to and from work.

Until recently, companies who wanted to offer the scheme had to apply for a consumer credit licence but it is now more straightforward. The employee chooses a bike, the employer buys it and leases it to them for a set period. A monthly payment is taken from the worker's salary and they can opt to buy the bike for a nominal sum.

More than 20 employers, including high street banks and Royal Mail, have signed up with Halfords to offer staff a "company bike".

Brighton-based Neilson Active Holidays is encouraging employees to cycle to work by offering interest-free loans to buy bikes, separately from the Government scheme.

Managing director Pete Tyler said: "We now have about 40 people cycling to work - about half the workforce. It's proving popular because it helps people on not very high wages afford a really decent bike."