Halfords has reported flat sales for the first half of the year, with consumers showing caution in their discretionary spending.
- Retail sales dipped slightly by 0.7% due to adverse weather and challenges in the cycling segment.
- The company’s Autocentres division, however, showed a modest growth of 0.8% in like-for-like sales.
- Halfords is progressing with its Fusion strategy, aiming to enhance its retail service offerings.
- Despite economic challenges, the company’s overall financial outlook remains unchanged.
Halfords has detailed their financial performance for the first half of the fiscal year, revealing a modest decline in retail sales as consumers exercise caution amid economic uncertainty. The company cited challenging weather conditions, marking the UK’s wettest spring since 1986, as a significant factor impacting the cycling business, leading to a 0.7% drop in like-for-like retail sales.
On a more positive note, the retailer’s Autocentres division, responsible for 40% of the group’s revenue, recorded a 0.8% uptick in like-for-like sales. This growth was driven by strong demand for services, maintenance, and repair offerings, indicating resilience in non-retail avenues.
Halfords is making strides with its Fusion strategy, which focuses on upgrading the retail car park service in 50 towns and improving staff training. This strategy is designed to empower employees to provide comprehensive solutions to customers, thereby enhancing overall service quality.
In the face of £130 million inflation since FY20, Halfords is on track to achieve £30 million in targeted annual savings to buffer against expected inflationary pressures. This financial prudence is being paired with a continued focus on optimising existing operations to ensure near-term returns while also investing in future growth initiatives.
CEO Graham Stapleton stated, “While consumers remain cautious in their discretionary spending compounded by uncertainty around the contents of the upcoming Autumn Budget, we have continued to focus on controlling the controllables.”
The company’s strategic focus on service enhancement and operational efficiency is aimed at navigating current economic challenges while positioning for future growth.
