Our Strategy

Our Strategy

Our resilient performance in FY24 is evidence that our strategy to accelerate growth in Motoring, Services and B2B is working.
Graham Stapleton Chief Executive Officer

We set out a clear vision and purpose in September 2018, which remains unchanged. Our strategy is as relevant now as it was then, arguably more so given shifting markets and changes to consumer behaviour. We have achieved significant progress in recent years and will continue to invest in the execution of the strategy, for the benefit of all stakeholders.

1

Inspire our customers with a differentiated and super-specialist offer.

2

Support our customers through an integrated, unique and more convenient services offer.

3

Enable a Lifetime of motoring and cycling.

Inspire

Inspire our customers with a differentiated and super-specialist offer.

  • Transition from a general-specialist to a super-specialist.
  • Lead and differentiate our markets with customer-led innovation.
  • Redefine and further differentiate our own label ranges.
  • New customer experience in stores and garages, linking online and offline journeys.

Support

Support our customers through an integrated, unique and more convenient services offer.

  • Offer convenience through an integrated and expanded ‘on-demand’ service proposition across
    stores, garages and mobile.
  • Enhance the customer journey from booking through to service delivery.
  • Enhance our unique position in E-bike servicing in retail stores and hybrid and electric vehicle
    servicing in our garages with the most fully trained technicians outside the dealer network.
  • Increase awareness of Halfords services by leveraging the Halfords brand.

 Lifetime

Enable a Lifetime of motoring and cycling.

  • A more focused and targeted approach to loyalty at a Group level in order to optimise the lifetime value of our customers.
  • Accelerating the development of our Customer Relationship Management (“CRM”) programme, offering compelling reasons for our customers to return and shop across the Group.

To Inspire and Support a Lifetime of motoring and cycling

Inspire our customers with a differentiated and super-specialist offer

Our Focus

  • Be known as a super-specialist, by enhancing our product range and training our colleagues.
  • Lead and differentiate our markets with customer-led innovation, utilising deep customer insight and working with suppliers to create and market innovative products that are exclusive to Halfords.
  • Improve our customer shopping journey online and in-store by continuing to optimise the Group’s web platform and the full omnichannel journey, whilst focussing on personalisation by leveraging our Group-wide single customer view. Improving the in-store experience by providing a more experiential, inspirational and service-led environment.

Progress made in FY24

  • Significant extension of our Car Parts offer.
  • Further product innovation in both Bikes and Motoring products.
  • Strong performance in Tredz, our Performance Cycling business.
  • Our Fusion trial towns generated excellent financial results, encouraging us to roll-out this concept further.

Priorities for the next 12 months

  • Project Fusion: investing in at least 25 towns, with significant upgrades to Retail car parks and Autocentres garages.
  • Relaying the motoring space in up to 100 Retail stores.

To further enhance the suite of electric services and solutions customers can access at Halfords, we have launched a new EV charging solution in partnership with technology firm BOXT and Stashbee. This partnership enables customers to have top-of-the-range EV charge points installed at their house by a BOXT engineer with the added confidence that comes due to the reputation of the Halfords brand.

The high cost associated with switching to using electric vehicles is only one barrier to adoption. According to the Department for Transport, concerns about where to charge is the biggest barrier to adoption. Around 40% of UK homeowners do not have access to off-street parking and the UK only has 15% of the electric vehicle charging points it needs to meet net zero by 2050.

Our goal is to not only give customers confidence to switch to electric but also to help boost the number of charge points across the UK. Customers are encouraged to list their driveway out on Stashbee to help bridge the electric charging gap, which is significant in residential areas away from trunk roads.

This initiative makes us the first mainstream trusted retailer to offer a full end-to-end home charging solution and supports our overall mission to champion the UK's transition to electric forms of mobility.

Support our customers through an integrated, unique and more convenient services offer

Our Focus

  • Offering customers access to our products and services via a unique combination of stores, garages and mobile vans, complemented by a strong online proposition.
  • • Having an integrated services proposition across the Group, with one Group website and seamless referral of customers from stores and vans to Autocentres garages.
  • Further roll-out of new garages to reduce average drive time even further.
  • Grow our B2B channels, particularly our Commercial Fleet Services business.
  • Grow our Avayler platform to drive opportunities with Automotive service providers around the world.

Progress made in FY24

  • Very strong growth in our Commercial Fleet Services business, with the acquisition of Lodge providing national coverage and attracting new customers.
  • Better utilisation in garages, driving demand to under-utilised garages and reducing labour turnover.
  • Improved customer proposition for tyre fitting, with more affordable options, greater financing choices, and better convenience through same day fitting.
  • Dynamic pricing launched for MOT and Tyre bookings, giving customers a choice on quickest, nearest and best value.
  • Launched a new Cycle2Work web portal for small and medium sized customers.
  • Avayler completed a 15 year commercial agreement with Bridgestone, which included Bridgestone taking a 5% stake in Avayler.

Priorities for the next 12 months

  • Continue to grow the Commercial Fleet Services business, leveraging its national scale to win new contracts.
  • Leverage unique platform to improve consumer garage operating model.
  • Invest in leadership capability and garage apprentices, with up to 150 new apprentices anticipated in FY25.
  • Avayler will focus on operationalising the Bridgestone contract whilst developing the order pipeline.

Following on from the acquisition of The Universal Tyre Company in FY21, this year we acquired three new businesses, further increasing the scale and coverage of our Group Motoring Services. We have welcomed the teams of National, Iverson Tyres and Havebike into the Group, meaning that in 2021 we became the biggest motoring services provider in the UK. These acquisitions have led to a significant change to the Group physical estate, growing the number of fixed service locations by 60%, giving customers access to the services we offer at an even greater number of locations.

Alongside these acquisitions, we have entered into new B2B markets which offer international growth opportunities with our proprietary software business, Avayler. This platform utilises our existing digital technology, such as PACE, our market-leading in-garage digital operating platform, and offers businesses a way to streamline their customer proposition and maximise efficiencies across their operations.

Enable a lifetime of motoring and cycling.

Our Focus

  • More actively drive customer loyalty and retention by leveraging our CRM programme and Halfords Motoring Club, providing compelling reasons for customers to return to our brand, optimising lifetime value and advocacy.
  • Put our customer at the forefront of decision-making.

Progress made in FY24

  • Signed up 3.4 million members to our Halfords Motoring Club, significantly ahead of our target and double that of last year.
  • The mix of premium members increased to 8% of total membership, supported by the recent launch of premium till sign-up capability in our Retail stores.
  • NPS score of our Halfords Motoring Club members was 71.2 points, higher than non-members.
  • Cross-shop of our members was four times higher than non-members. 39% of MOTs completed in Autocentres came through the Halfords Motoring Club.

Priorities for the next 12 months

  • Grow the Halfords Motoring Club in National and focus incentives on tyres.
  • Build on partnership proposition to support with acquisition and retention of members.

This year, we launched our brand-new Motoring Loyalty Club, a loyalty scheme offering customers great benefits, such as free MOTs, free next day delivery and discounts across the Group, to help with their motoring journeys. The Motoring Club gives us an even better way to get to know our customers and communicate with them. We have built new technology to provide real-time, personalised expertise and rewards for members who access our services through any channel – whether a store, garage, van or online – and the response from our customers has been great. This is just the start of the loyalty scheme and we will continue to develop this proposition going forwards.