Halfords says consumers wary of spending on big-ticket items as Budget looms

The retailer said that income maturation has slowed implicit the archetypal fractional of its fiscal year, with shoppers inactive uncertain astir the economy

Halfords says that uncertainty astir the system and upcoming taxation changes mean consumers are inactive holding backmost from making costly purchases.

The retailer, renowned for its bikes and car components, said income were stagnant successful the archetypal fractional of its fiscal year. With income dipping by by 0.1% implicit the six months ending connected 27 September compared to the erstwhile year, the alteration was attributed partially to an exceptional surge successful request during 2023, particularly for car servicing astatine their garages.

However, contempt continuing robust show successful services, maintenance, and repairs implicit the caller term, tyre fitting saw a plateau arsenic budget-conscious buyers opted for much economical options. Halfords added that a grounds downpour successful outpouring played a portion successful dampening retail figures, which fell modestly by 0.7% year-over-year, puncturing the request for leisure cycling.

Running astir 380 stores and adjacent to 550 garages wrong the UK, the retailer observed tentative improvements successful user outlook, but said radical are inactive cautious astir spending, particularly connected higher-priced items. Graham Stapleton, the CEO of Halfords, pointed retired that customers "remain cautious successful their discretionary spending compounded by uncertainty astir the contents of the upcoming autumn Budget".

Despite these challenges, helium emphasized that the institution remains focused connected "controlling the controllables". Halfords is connected way to marque savings of £30m this year, a strategical determination which it hopes volition offset an expected deed of £35m owed to ostentation costs.

Aarin Chiekrie, Hargreaves Lansdown equity analyst, said: "Price-conscious customers person been trading down to fund ranges, and determination person been elevated levels of promotions successful the premium marketplace to assistance support banal turning over. Big-ticket discretionary items look similar 1 of the biggest drags connected performance.

"Cycling and staycation products similar camping instrumentality and extortion boxes conscionable aren’t flying disconnected the shelves similar they were successful the post-pandemic boom. The outlook for adjacent twelvemonth remains unchanged truthful far, but there’s nary warrant that show volition footwear backmost into cogwheel by then, truthful expect much bumps successful the roadworthy ahead."