Halfords has announced that its sales grew over the past year, driven by a modernisation of its garages and increasing demand for e-bikes. The motoring and cycling retailer reported total revenues of £1.8 billion for the year ending April 3, marking a 4.8% like-for-like increase compared to the previous year.
Retail and Autocentre Performance
The sales growth was underpinned by a 4.1% rise in retail sales and a 5.8% jump in sales from its autocentres. Halfords attributed the strong performance in its consumer garages business, which includes car repairs and MOTs, to the opening of dozens of Fusion garages that integrate retail and garage services. The company has opened over 100 such garages and plans to open another 35 this year.
Workforce Efficiency and Modernisation
To address higher wages and national insurance increases, Halfords has taken steps to improve workforce efficiency and reduce labour costs. These measures include redeploying staff to busier garages and reducing reliance on more expensive agency workers. The firm is also modernising its network by introducing specialist electric vehicle (EV) servicing equipment at most sites and plans to provide staff with tablets to support vehicle inspections.
Retail Highlights and E-Bike Expansion
In the retail segment, which sells products such as bikes and car parts, Halfords reported sales growth despite a subdued consumer environment. A particular highlight was the cycling segment, especially e-bikes. The company plans to significantly expand its range, including mountain and hybrid e-bikes, as demand continues to grow.
Recent Trading and Profitability
Halfords stated that trading has remained strong in recent months and that it has not observed any change in customer behaviour due to the Iran war, though it remains "sensitive" to any potential impact on spending in the months ahead. The company returned to a pre-tax profit of £43.6 million for the year, recovering from a £30 million loss the previous year.
