Strengths and Opportunities
Halfords has a number of very clear strengths:
- Well-known brand with great overall awareness and a strong heritage.
- A wide and authoritative range of products and services across the categories in which Halfords operates, with a reputation amongst customers for quality products.
- Leaders in many categories and operating in markets with positive tailwinds going forward.
- Specialist positioning; 80% of Halfords Retail customers need some form of assistance with their purchases.
- Strong cross-shop: 85% of Halfords’ cycling customers also shopping in motoring categories.
- The car parts fitting and cycle service and repair propositions are on trend to support customers who want someone to “do it for them” rather than doing it themselves.
- A wide store network, which is central to the specialist service offering and underpins Halfords’ competitive advantage.
We have many opportunities ahead, including:
- Significant headroom for continued growth in motoring and cycling. For example, there is an opportunity to continue to improve awareness of our WeFit proposition, with its clear differentiation of being on-demand and better value than the competition.
- Improving brand consideration amongst younger customers.
- As of November 2015 we could only match 3% of our sales to customers. In Retail, we can now match 46% of sales to customers. We can continue to grow this to better understand customers and increase their lifetime value.
- New technologies across in-car technology and dash cams.
- There are some niches where we have not fulfilled our potential, such as PACs.
- Improving our warehouse and distribution capability in order to facilitate growth opportunities.
- Investment in IT infrastructure to develop and deliver applications and information that benefit our colleagues and customers.