Analysis: Have the wheels come off Halfords’ new strategy?

Halfords Derby  3

Halfords has unveiled a disappointing trading update and downgraded its profit guidance for the second time in 12 months.

The motor and cycling specialist suffered a 3.9% drop in total revenues in the 20 weeks to August 16, and trimmed its full-year profit expectations from £59m, which would have been flat year-on-year, to between £50m and £55m.

Within its retail division, where sales slumped 4.8%, Halfords suffered a 5.9% dip in motoring revenues, while cycling sales declined 1.1%. Boss Graham Stapleton attributes the sales slowdown to a combination of “poorer” summer weather and a lack of consumer confidence preventing shoppers from loosening their purse strings for big-ticket purchases.

The retailer’s 3.9% fall in like-for-like retail sales is particularly bruising, considering that Halfords is ploughed investment into “refreshing the cycling space” across 220 of its stores during the period.

And Stapleton warns that “given the uncertainty of the current environment”, Halfords does not anticipate its sales to improve significantly for the remainder of the financial year.

Subscription content

Please sign in now if you have a subscription or are already registered with us.

Retail Week

Register for free to continue reading provides premium, in-depth intelligence that helps retailers judge risks, spot opportunities and identify what they need to do to win in the digital economy.

Register today for a taste of our high-quality intelligence and enjoy:

  • Two free article views per calendar month on
  • Detailed analysis of current trends and events 
  • Exclusive newsletters
  • In-depth reports, videos, interviews and much more

Discover Retail Week register now

Please note, if you have recently purchased a subscription, it may take a few minutes before your account is updated.