Halfords posts strong sales growth despite supply chain constraints
Halfords saw its total sales increase by 18.7% in the 20 weeks to 20 August compared to the corresponding period two years ago after trade was boosted by the increased scale of its Autocentres business.
Within Halfords’ retail business, sales grew by 7.8% on a total basis and by 17.1% on a like-for-like basis as like-for-like revenue in the motoring category rose by 11.2%. Cycling sales were also strong, climbing by 24.2% on a like-for-like basis compared to two years ago, but were down 22.8% on 2020 due global cycling supply chain disruption leading to capacity constraints.
Total revenue at Halford’s Autocentre business came in at 86.2% higher than in 2019 with like-for-like sales increasing by 15.5%. This was driven by increased scale, improved utilisation and the retailer’s focus on the B2B sector.
Commenting on the performance, Graham Stapleton, Halfords chief executive, 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.”
Looking ahead, the retailer said it expects many of the cycling supply chain issues to continue for some time, so it will be focusing its efforts on achieving strong growth in its services and B2B businesses and improving its retail motoring performance.
Stapleton added: “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.”
