Halfords profits from ‘staycations’

HALFORDS has notched up a hike in sales thanks to surging demand for roof boxes and camping gear as more Britons choose a “staycation” in the UK.

The car parts-to-bicycles chain said like-for-like retail sales rose 3.5% in the 20 weeks to August 18, with motoring sales lifting 2.3%.

Halfords saw travel solutions sales jump 8.2% higher, driven by the rising popularity of UK holidays in the face of poor exchange rates from the Brexit-hit pound.

It also reported strong demand for bikes, with sales up 5.2% and electric bikes and repair services seeing strong performances.

Outgoing chief executive Jill McDonald said: “A combination of good planning and execution meant that we optimised sales from the staycation summer, with strong growth in camping, roof boxes and cycle carriers.”

But the group saw a 2% drop in like-for-like sales at its autocentres service, leaving overall group-wide same-store sales 2.7% higher in the 20-week period.

Shares in Halfords leaped nearly 5% higher after its trading update yesterday.

The group’s latest update showed strong online sales, with growth of 11.2% and 85% of orders picked up in store.

The group confirmed it was on track for full-year profit forecasts and reiterated an expected hit of around £25m from the weak pound, of which some £15m will be taken in the first half. But it stressed it expects to fully recover the impact over time.