Halfords boss ‘positive on prospects’ as sales rise in key growth categories

The cycle specialists recorded a 19% rise in sales over the 20-week period to August 20 compared with the same period two years ago, up 17% on a like-for-like basis.

Halfords attributed this to sales growth in its key areas – including retail motoring and retail cycling driven by the increase in staycations this year.

The retailer also reported “exceptional” growth in its services (78%), B2B (83%) and online (80%) on a two-year basis.

Like the rest of the retail sector, Halfords has outlined challenges relating to supply chain disruption – including freight costs and the lack of HGV drivers.

Nevertheless, the retailer has reiterated its profit expectations for the full year.

Halfords chief executive Graham Stapleton said: “The first 20 weeks of FY22 delivered a strong trading performance against a hugely challenging backdrop. 

“Our motoring business now represents 65% of our revenues and continues to go from strength to strength, driven by the increased scale of our Autocentres business, the ongoing demand for our Halfords Mobile Expert Vans and by recent staycation trends. 

Although our cycling business is currently impacted by the considerable disruption in the global supply chain, as the UK’s largest cycling retailer we are well-positioned to adapt and to serve our customers, and we remain confident in the long-term outlook for the cycling market. 

“The strength of our overall performance is a clear illustration of the relevance of our service-led strategy and gives us the confidence to continue with our investment plans. We remain positive on our prospects for FY22 and beyond.”