Car maintenance boosts revenues for Halfords
A RISE in customers looking to maintain their vehicles has contributed to a strong third quarter performance for Midlands-based retailer Halfords.
The Redditch firm said its Car Maintenance operation had seen an 11% increase in the 15 weeks to January 9, 2015 and a 6.8% increase for the 41 weeks leading up to the end of Q3.
It said many customers had taken advantage of the company’s wefit offer, where staff will install parts such as car batteries, wiper blades and replacement bulbs in return for a small charge saving them the hassle of doing it themselves or seeking out a garage.
However, it wasn’t just Car Maintenance that saw growth. Virtually every other operation saw an increase with the exception of Car Enhancement, which fell 1% in the 41 weeks to January 9 and by 0.3% in Q3 as fewer people bought Sat Navs and car audio systems.
Highlights for the 15-week Q3 period, which included Christmas, saw strong growth in the cycling department, especially children’s bikes.
The period also saw the company open its first Cycle Republic store in London, with a second opening due for the end of January.
The company also amended its revolving credit facility from £200m to £170m and extended the facility to November 2019.
Across the group, revenue was up 6.7% for the 41 weeks and 6.5% for Q3. The Retail division rose by a respective 6.6% and 6.5% with the Autocentres operation up 7.6% for the 41 weeks and 6.5% for Q3.
Matt Davies, Chief Executive, said: “We are delighted to report strong Q3 sales, demonstrating our ability to continue to drive top-line growth. The standout performer this quarter was Car Maintenance, with our service-led wefit offer again achieving record levels of Parts fitting, along with an excellent Parts sales performance, particularly in car batteries.
“Cycling sales continue to be strong, with Children’s Bikes sales up 13.8% highlighting that, with the right product and service offer, a bike remains a popular Christmas present.
“Investment in our omni-channel proposition helped online sales grow to record levels, driven by Click & Collect. A further nine stores were refreshed in the period to put us on track for 70-75 refreshes by the end of the year.”
