Overview of the Group’s strategy
Halfords is a strong business with highly-engaged colleagues, a sizeable and growing services business, leading positions in attractive markets and a prudent capital structure and strong balance sheet.
These strengths also provide a solid foundation on which to build, but are not sufficient in isolation to provide a long-term, sustainable and profitable business nor counter some of the significant headwinds we face going forwards. The retail environment is ever-changing, with increasing competitive threats and more demanding customer expectations. After a detailed strategic review process we are clear that standing still is not a long term option.
We have chosen to accelerate investment in the business to become a much more differentiated, super specialist with an integrated, unique and more convenient services offer, and to focus on retaining customers for a lifetime. By doing so we will develop a business with long-term, sustainable growth prospects.
Our Market Context
- Leading market share in the cycling and car products and fitting market, with significant headroom to grow further in car servicing
- Increasing demand from customers for ‘do it for me’ service – looking for convenient solutions to fit around busy schedules
- Significant opportunities to improve cross-shop with only 2% of retail customers also using Autocentres
- Market dynamics are changing – cars are becoming more complex and fewer people have the knowledge and capabilities to do work on their cars
- Huge increase in popularity of e-bikes and e-scooters, combined with the shift towards electric vehicles presents a major opportunity for Halfords to meet the needs of these more complex products as a specialist service provider