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.
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Halfords has rolled out a raft of initiatives to reduce motoring costs for shoppers amid the cost-of-living crisis.
Diversifying with the savvy of a start-up, motoring and cycling specialist Halfords is applying its expertise to needs-based revenue streams, positioning itself to remain resilient as households feel the pinch.
Halfords has downgraded its profit expectations for the full year despite a rise in sales and profits.
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