Halfords experiences flat sales in the first half, highlighting cautious consumer spending due to economic uncertainty.
- The retailer reports a marginal decline of 0.1% in like-for-like sales during the 26 weeks leading up to September 27, 2024, compared to the same period last year.
- A significant drop of 0.7% in retail like-for-like sales is partly attributed to adverse weather conditions impacting the cycling sector.
- Halfords Autocentres shows resilience with a 0.8% increase in like-for-like sales, driven by growth in services, maintenance, and repairs.
- Despite economic challenges, Halfords remains focused on its ‘Fusion’ strategy to enhance long-term growth.
In the face of economic headwinds, Halfords has posted flat sales figures for the first half of the year. The company’s like-for-like sales recorded a minor dip of 0.1% for the 26-week period ending on September 27, 2024, as opposed to an 8.3% growth observed in the previous comparable timeframe. This stagnation is reflective of a broader trend of cautious consumer behavior, potentially influenced by the looming Autumn Budget.
The retailer’s retail segment saw a decline of 0.7% in like-for-like sales, a downturn partly blamed on the UK’s wettest spring since 1986 which negatively affected the cycling market. This challenging circumstance underscores the complex interplay between market conditions and sales performance, particularly within specific sectors like cycling.
Conversely, Halfords Autocentres demonstrated resilience with a 0.8% increase in like-for-like sales. This growth has been largely fueled by robust demand in services, maintenance, and repair offerings, illustrating a diversified portfolio’s capability to balance weaker retail results.
Despite a subdued first-half performance, Halfords remains steadfast in executing its Fusion concept strategy. This initiative includes enhancing the retail car park service offering in 50 towns and extensive training across retail and Autocentre staff to adopt a solutions-based sales approach. The strategy is key to unlocking future growth potential and positioning the company advantageously within the market.
Chief Executive Graham Stapleton expressed a strategic focus on managing controllable factors while acknowledging persistent consumer caution amid economic uncertainties. His statement reinforces Halfords’ commitment to sustaining a strong balance sheet while absorbing significant inflationary pressures since fiscal year 2020.
Halfords navigates a challenging retail landscape by leveraging strategic initiatives to build resilience and foster future growth.