Our Strategy

Our Strategy

Strong financial results and record levels of customer satisfaction are a clear reflection of the progress we are making against our strategy and the transformation of the business since FY18.
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.

1 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.

2 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.

3  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

Putting Customers in the Driving Seat

Inspire our customers through a differentiated, super-specialist shopping experience

Objectives

Specialism

We will become a super-specialist by:

  • Increasing our online ranges of motoring and cycling products.
  • Investing in training with even greater focus on specialism.
  • Reducing our non-core products.

Innovation

We will lead and differentiate our markets with customer-led innovation by:

  • Utilising customer insight to develop products we know they want and need.
  • Working with suppliers to jointly create, and bring to market, innovative products which are exclusive to Halfords.

Customer Experience

We will improve our customer shopping journey online and instore by:

  • Continuing to optimise the Group’s web platform and the full omnichannel journey.
  • Focusing 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

  • Launched two ‘Fusion’ towns which have both been successful, giving us some clear opportunities on how to expand in the next year, most notably cross-selling and sales opportunities in our garages.
  • Launched a new electric vehicle charging solution in partnership with BOXT, making us the first mainstream trusted retailer to offer a full end-to-end home charging solution.
  • Launched Bike Xchange, a brand-new proposition with new operational and technical processes, putting Halfords into the rapidly growing second-hand market for the first time.
  • Further expanded our marketleading E-bike and E-scooter ranges.
  • Launched the UK’s biggest E-bike trial scheme.

Priorities for the year

  • Roll out capital-efficient Fusion investments across the estate including Parts Hubs, Fitting stations and Fusion selling practices and technology.
  • Further our super-specialism by deepening our ranges within our core markets, such as on-demand tyre fittings as well as access to a broader range of car parts.
Case Study EV Charging Solutions

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

Objectives

Integrated

We will have a unified services identity across the Group through:

  • One seamless website, combining Halfords Retail, Halfords Autocentres and Halfords Mobile Expert.
  • Easy referral from Retail WeCheck findings to Autocentres booking.
  • Integrating the Services booking experience to include nearest available location and timeslot.

Unique

  • Offering customers access to our products and services via a unique combination of Retail stores, garages and mobile vans complemented by a strong online proposition.

Convenient

  • Combining our physical estate with a consistent mobile services offer and increased availability.
  • Full roll out and expansion of Halfords Mobile Expert to give most of the UK population access to our mobile services.
  • Future roll out of garages to reduce average drive time from 30 minutes to 20 minutes.

Progress made

  • Three acquisitions in Services helping us to become the biggest motoring services provider in the UK, exceeding our target of 200 vans and 550 garages.
  • Entry into the software market with the launch of Avayler already supporting ATD and Tirebuyer in the US. Avayler is our marketleading digital platform which underpins our motoring services businesses.
  • ‘WeCheck’ Phase 3 – allowing us to refer customers across the group from Retail directly to one of our garages or mobile locations.

Priorities for the year

  • Integrate National to crystallise the next phase of performance synergies including rebranding sites, installing MOT equipment and implementing Avayler across the estate.
  • Continue to make progress towards our medium-term target of 800+ garages, 300 Halfords Mobile Expert vans and 500 Commercial vans.
  • Accelerate investment in Avayler to drive further opportunities with third party service providers, focusing on the Automotive industry.
Case Study Growing our Group Services Proposition

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

Objectives

Loyalty and Retention

We will more actively drive customer loyalty and retention by:

  • Supercharging our CRM programme, providing compelling reasons for customers to return to our brand.
  • Building cross-Group loyalty programmes to optimise lifetime value and advocacy.

Customer First

We have started to drive meaningful action from our insight, which has been used to:

  • Define future range decisions.
  • Change the labour operating model to better reflect customer needs.
  • Obtain a greater understanding of customer pain points and moments that matter.
  • Provide a Group-wide Financial Services offer.

Progress made

  • Launched our unique and marketleading Motoring Loyalty Club, putting the customer and their car at the centre of our proposition.
  • We can now offer our customers bespoke advice, offers and savings, meaning we can give customers better value and offer a better service proposition.

Priorities for the year

  • Focus on driving memberships and VRN data capture, targeting more than one million customers by the end of FY23.
  • Utilise our Group Data platform and Motoring Loyalty Club to engage with customers through the life of their car.
  • Target 10% Premium mix to test subscription style memberships.
Case Study Motoring Loyalty Club

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.