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.
Halfords has posted a surge in sales during the pandemic period driven by a spike in demand which has seen both its cycling and motoring divisions deliver growth.
The need to transform to keep pace with consumer demands and habits is a never-ending narrative in UK retail.
Halfords has earmarked 60 of its stores for closures, accelerating its rate of planned closures following the coronavirus pandemic.
Bikes and motor accessories specialist Halfords generated full-year profits ahead of guidance but remained cautious about trading conditions.
Halfords has said it expects full-year profits for this financial year to come in at the top end of the expected range, while noting a downturn in overall group sales for the current trading period.
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