Halfords Group warns that consumers are delaying purchases of expensive items due to the uncertainty surrounding the economy, and the upcoming tax changes in next week’s budget.
Like-for-like, the retailer and repair shop that sells bicycles and leisure equipment, as well as car parts, reported a 0.1 percent decline in sales for the 26-week period ending September 27 compared to the same time last year.
Halfords employs approximately 12,000 people across 377 retail outlets and 650 garages in the UK. “Despite pockets of improved consumer sentiment”, the outlook for the near future remains “uncertain”, as consumers remain cautious about making large ticket purchases.
Halfords’ retail division, which accounts for around 60% of the group revenue, saw a decline in like-for-like sales by 0.7 percent in the 26-week period. leisure biking range was affected by the wet spring. The retailer claimed that the record rainfall in spring was a factor for lower retail sales. These fell by 0.7 percent year-on-year.
Halfords Autocentre, the Halfords Autocentre unit that is responsible for 40% of group sales, has remained resilient. In the 26 weeks up to September 27, like-for-like division sales increased by 0.8 percent compared to the same period in 2013. This was due in part, because of the growing demand for repairs, maintenance and services.
The 1892-founded company enjoyed a boom during the Covid pandemic when people began cycling more and were able to save money for cars and bikes. The cycling boom that occurred during the Covid pandemic has faded since then due to a decrease in consumer spending.
Halfords’ chief executive, Graham Stapleton said: “While consumers continue to be cautious with their discretionary expenditure compounded by the uncertainty surrounding the Autumn Budget contents, we have continued focusing on controlling the controllables. I am pleased with the performance of Halfords in the first half 2025.” He added, however, that two of Covid’s core markets were “significantly lower” than their pre-Covid level.
Halfords expects to save £30 million on inflation this year. Manjari Dhar is an equity analyst with the Royal Bank of Canada. She said, “Near-term, we expect continued weakness in the tyre and cycling markets, but we do see some potential for recovery in the automotive market, given recent improvements in UK consumer confidence.”
Halfords shares closed at 157 1/4p, up 15.4p or 10.7 percent.
Wickes Group has reported a 2.6% increase in comparable revenues for the third quarter, as it increased its share of the market. The company’s revenues increased to £391.3million in the 13-week period ending September 28, as consumers caught up on DIY projects that were delayed due to the rainy summer. Wickes predicted that retail sales would likely decline in the fourth quarter as the pent-up demands subside.
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