Our Business Model

Our Business Model

How We Create Value

Fulfilling our vision to be the super-specialists in motoring and cycling, trusted by the nation.

Our evolving Business Model

Recognising the market opportunities, we have transitioned away from being just a retail business. Our services, our colleagues, our infrastructure and our culture have all evolved in line with what our customers are demanding. Our business model has also changed to reflect this customer demand and this evolution has meant we are in a strong position to capitalise on the opportunities in front of us but without compromising the foundations of our core business.

Our Resources and Key Strengths

Colleagues

Training and accreditation, such as our 3-Gears training programme in Retail or our electric/hybrid vehicle maintenance training in Autocentres, ensures that consistent product knowledge and services capability reaches our customers across all locations.

Partners

Halfords is proud to work with suppliers, distributors and other industry partners to drive our business forward, supporting the sale of our products and services and enabling us to work with communities across the UK.

Brand Strength

Halfords is the nation’s trusted retailer for motorists and cyclists and a leading provider of motoring services. We have a range of exclusive and highly regarded brands including Apollo, Carrera and Boardman in Cycling, as well as our Halfords Advanced ranges in Motoring.

Infrastructure/Assets

Our physical estate of Retail stores, Autocentres garages and Mobile Expert vans, combined with a best-in-class web platform and an efficient distribution network, provide customers with a convenient omnichannel offer.

Financial Rigour

With a strong balance sheet and strong cash generation, we have continued to invest in appropriate systems, capabilities and people to help support and grow our business for the long term.

Sustainable Mindset

We have an established sustainability strategy with proven results, and have embedded this within all areas of the organisation, ensuring we are collectively focused on minimising the impact our operations have on the planet and people we work with.

What we do

Products

Products are at the core of our business and have been for over 125 years, defining us as the UK’s leading provider of motoring and cycling products. Whether in one of our physical locations or online, customers are able to find any part or product they want for their motoring or cycling needs from E-bikes to socket sets, power washers to bicycle helmets. Our colleagues are the true experts and can suggest suitable products for each customer situation.

Motoring
Products

Mainstream
Cycling
Products

Performance
Cycling

Services

Our services proposition complements our strong product business; helping to keep the UK moving whilst delivering unrivalled customer service.

Operating from over 900 locations, Halfords has the national scale to offer services for our customers’ cars or bicycles in a way and at a location which is convenient to them. Whether a customer wants their bike serviced, a new wiper blade fitted, a new set of tyres fitted or a full car service we are able to help them find the ideal solution to fit their busy lifestyle.

Retail Motoring
Services

Retail Cycling
Services

Autocentres

How We Do It Differently

Market Positioning

Halfords' unique position in the market makes us well-placed to provide customers with a "one-stop-shop" for their motoring needs, whereby they can access all the services and solutions they need in one place. The scaled, omnichannel platform we have created combined with our highly-skilled colleagues means that there are high barriers to entry for any competitors wishing to offer customers a similar service.

Our Unique Offering

Through our integrated Group website and our wide range of physical assets with over 1,750 service locations, we are able to offer customers a unique proposition. Our expert colleagues are always on hand to provide advice and knowledge for any motoring or cycling situation and this alone puts us at a significant advantage over our competition. Our mid-to-long term plan is to offer customers an even more holistic shopping experience, a "one-stop-shop", where they can access any service or product they might need for their motoring or cycling journey. Our Avayler platform has led to Halfords entering the Software as a Service market and our bespoke software has meant that we are able to offer other businesses a completely unique opportunity to incorporate our in-house software into their own operations to greatly improve their own customers' experiences and their productivity.

Omnichannel Customer Proposition

Our customers can shop in-store or online, choose whether they want their products fitted at a store or on their driveway at a time of their choosing and access a whole suite of services, all without leaving the Halfords brand. Our new Fusion stores mean the physical environment is also linked, giving customers an even more seamless shopping experience.

Data Capabilities

One of our main priority areas has been getting to know our customers better than ever before. This has meant creating an integrated and unique database where all of our systems can work together, building a digital picture of our customers today, but also predicting future customer needs. We have been using our growing data science and modelling capability to drive highly personalised, timely and helpful communications that both engage and support our customers, which, in turn, increases lifetime value for Halfords.

Varied Customer Base (B2B & B2C)

Traditional shopping is at the core of our business and we remain committed to our loyal customer base. In addition, however, our growing commercial business means that we are able to offer to businesses, what we offer to consumers; a convenient solution where they can have their fleet vehicles serviced, take advantage of our market-leading Cycle2Work scheme or simply access our B2B portal to purchase products for their employees. Our new Avayler platform has also enabled us to attract global customers as we license software developed in-house to businesses around the world, opening up a new and exciting opportunity for our business.

Our strategic priorities

1

Inspire

2

Support

3

Lifetime

The Value We Create

Customers

Access to a market-leading shopping experience, both online and in stores, helping meet all of their motoring and cycling needs in a way convenient to them, with access to technical and expert advice through our colleagues.

Colleagues

Developing, rewarding and retaining our colleagues so that they are engaged to drive our growth ambitions.

Financial

Generating returns for our shareholders through effective management of our financial resources.

Community

Building relationships with suppliers, customers and the communities around us.

Environmental

Ensuring the resources our business utilise have a positive impact on the environment, both today and in the future.