Autocentres continue to drive growth for Halfords
HALFORDS has seen revenues fall at its retail arm although it continues to see growth in its car servicing operation as cash-conscious motorists look to retain their vehicles rather than trade up.
However, despite the success of the Autocentres operation, the Redditch-based group saw group revenue decline 2.1% in its last quarter, while in the 39-weeks of the financial year to date, revenue in down 1.1% on 12 months ago.
The UK and Ireland retail division was down 4.4% in the last quarter on a comparable basis and 2.3% for the year-to-date. In contrast, Autocentres revenue was up 18.7% on the quarter and 12% for the year-to-date.
In-store car maintenance was down 12.8% on the quarter, a figure matched in car enhancement. The group said the milder weather this winter compared with 2010 was a major contributory factor.
In the run-up to Christmas, its retail Leisure operation fared well with like-for-like cycling revenues up 15.1%, driven by a strong performance in Children’s Bikes and continuing momentum in Accessories.
Across the Leisure operation as a whole, last quarter revenues were up 9.7%.
Online Retail sales declined by 3.6% largely as a result of falling Sat Nav sales.
David Wild, chief executive, said: “The underlying performance of our business is encouraging as we develop Halfords in line with the changing needs of our customers.”
Management expectations for the full year suggest that retail gross margin will decline by 130-150 basis points, in line with market expectations.
A programme of store closures and a reduction in headcount have helped to keep costs down, the group added.
“The economic outlook remains uncertain, but we are confident that our focus areas create the right platform for future growth,” added Mr Wild.
