Halfords reports flat sales for the first half of the year, citing cautious consumer spending.
- Like-for-like sales dipped slightly by 0.1% over 26 weeks ending 27 September.
- The UK’s harshest spring since 1986 impacted retail performance, particularly in cycling.
- Halfords Autocentres saw a modest increase in like-for-like sales by 0.8%.
- The company remains focused on its Fusion concept to enhance future growth.
In the current economic climate, consumer spending remains restrained, which has been reflected in Halfords’ recent sales performance. The company has reported that sales for the first half of the year were flat, with a marginal decline of 0.1% in like-for-like sales over the 26-week period ending 27 September.
An especially challenging spring, noted as the wettest since 1986, has been cited as a significant factor in the downturn, particularly impacting the cycling segment of the business. Despite these adverse conditions, Halfords has managed to maintain a steady performance by focusing on controllable elements within its operations.
The Halfords Autocentres division, which comprises 40% of the overall group, exhibited resilience by achieving a 0.8% growth in like-for-like sales. This growth was primarily driven by strong demand in their services, maintenance, and repair offerings.
Halfords is progressing with its Fusion strategy, aiming to enhance the retail service proposition in 50 towns, which includes comprehensive training for staff in both retail and Autocentre settings to improve their capacity to sell complete solutions to customers.
While the first half showed signs of strain, the company’s outlook for the financial year remains unchanged. CEO Graham Stapleton expressed a commitment to optimizing the current platform for immediate returns and accelerating investment in the Fusion concept to ensure long-term growth.
Halfords remains focused on strategic growth amidst challenging economic conditions.
