Cycling now makes up only 25% of Halfords’ business, as the retailer aims to focus on more “needs-based” sources of revenue amid an uncertain economic environment.
Halfords said motorists were looking for cheap repairs, helping autocentre sales for the 20 weeks to 18 August up by 16.6% on last year.
Halfords noted that motoring repairs were a more reliable source of income as they tend to be needs-based, and customers are looking for cheaper options amid cost-of-living pressures.
Cycling sales fell, by 2.7%, with Halfords noting this part of the business was “adversely affected by unfavourable weather and low consumer confidence”. Overall sales were up by 7.8%.
CEO Graham Stapleton noted the high costs of car repairs, and said there was an opportunity for Halfords to offer a cheaper alternative.
"It’s been a good start to the year for Halfords, and our ongoing focus on essential maintenance and servicing is driving a strong performance in our autocentre and retail motoring business,” he said.
“We’re continuing to do everything that we can to support our customers through the cost-of-living crisis and are determined to offer them unrivalled value.
“For instance, our research shows that motorists who use manufacturers’ franchised dealerships can pay over 50% more for repairs compared with Halfords. With the average cost of car ownership pushing £300 a month, the last thing hard pressed motorists need, is to pay over the odds for repairs.”
Investec analyst Kate Calvert said: “Good progress continues to be made with its strategy to become a one-stop-shop for motoring and return to growth. We believe this is not reflected in its valuation.”
Shares lifted by 2.6% to 191.7p.
