Halfords is the UK's only substantial retail chain selling in four main categories – cycling, car maintenance, car enhancement and travel solutions. Category sales are split at around 70% for motoring and 30% for cycling, though cycling is a growing area as it increases in popularity in the UK. Halfords trades through around 450 eponymous stores and 22 Cycle Republic shops. The company operates in-garage servicing and auto repair through its 300-plus Autocentres and strengthened this with the acquisition of independent garage chain McConechy’s Tyre Service in late 2019. It also owns Tredz and Wheelies, having acquired the etailers in May 2016, as well as a stake in TyresOnTheDrive.com. Halfords is looking to combine its estate of garages, retail stores and mobile vans to increase its services footprint and drive cross-selling opportunities between retail and services. In terms of technology, the retailer is focusing on using AI to build a detailed picture of its customers. It is also moving part of its data estate to the cloud and investing in a new replenishment system.
A reported merger bid for Halfords by van rental group Redde Northgate has been dismissed over a price disagreement.
As Halfords reported strong sales driven by strong growth in its services and B2B division, chief executive Graham Stapleton says he expects the motoring specialist will sell more services than retail products for the first time by the end of this year.
Halfords’ autocentres have driven growth, but a drizzly summer and low consumer confidence limited its retail sales.
Halfords has reported growth in sales and market share in the 52 weeks ending March 2023 as investments in competitive pricing and a loyalty scheme paid off.
The motoring and cycling retailer issued a roadmap for its mid- to long-term growth as it plans to focus on “leveraging the unique platform” that differentiates it from competitors.
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