Halfords gearing up for expansion
Firm gets more ‘expert’ in cars and bike sales
HALFORDS plans to ramp up its expansion - including having 100 mobile mechanics.
The cycling and car parts giant yesterday revealed a blueprint for how it wants to grow over the next three to five years. New boss Graham Stapleton explained: “We want to be much more expert and specialised than we are at the moment.”
This includes upping its number of Autocentres from 300 to 400 and doubling its specialist bike chains, Cycle Republic and Tredz, to around 50. It is also targeting drivers who aren’t with a breakdown firm such as the AA.
The business has three vanbased Halfords Mobile Experts which it aims to increase to between 50 and 100.
Stapleton said: “It means we can access customers who can’t drive to an Autocentre or store because, for example, they’ve got a flat battery.”
The main 450 Halfords stores will stock more bicycles, including electric bikes which are now selling in bigger numbers. Former Olympic track champ Victoria Pendleton has added an e-bike to her range for the chain.
It is also beefing up car accessories, with a surge in steering wheel lock sales after a jump in thefts of cars with electronic keys, while cutting back on camping, barbecues and drones.
To fund the expansion Halfords will increase investment from £40million to £60m a year. But it will Victoria Pendleton also cut costs – putting back office jobs at risk – and the firm warned profits wouldn’t rise next year, when analysts had expected a 6% hike.
Halfords has also expressed interest in buying rival cycling chain Evans, which is looking for a buyer after suffering a cash crisis.
Hargreaves Lansdown equity analyst George Salmon said: “The group needs to be careful it doesn’t over-exert itself if a deal goes ahead.” FASHION chain Bonmarche has blamed highstreet weakness for a profit warning.
Shares crashed by a fifth as it said full-year profits are likely to slump from £8million to around £5m.
H&M Group also reported a dip for its third quarter yesterday.