We are evolving into a consumer and B2B services-led business, positioned for long-term success.

Our strategy remains unchanged, with motoring and cycling products remaining at the core of our proposition. However, in recognising the market opportunity and our unique advantages, we will continue to evolve into a consumer and B2B services-focused business, with a greater emphasis on motoring, generating higher and more sustainable financial returns.

The last year has proven that this is the correct strategic direction for our business, and we continue to invest in the right areas to meet the expectations of our key stakeholders. Alongside this, we recognise the importance of sustainability and we are therefore committed to minimising our impact on the environment, creating a diverse and inclusive workplace, and ensuring that we give back to the communities in which we operate.

We offer a unique proposition

Delivering value in the short term:

  • Halfords continues to play an essential role in keeping the UK moving during the pandemic.
  • Providing market-leading service specialism – the only business in the UK able to offer Motoring Services in a retail store, a garage, at home or at work, providing our customers with unparalleled choice and convenience.
  • Cycling growth remains strong, demand for mobile services is high.

Ensuring success in the long term:

  • Our market-leading proposition will continue to differentiate Halfords in the UK retail and motoring services sectors. Much of our Services proposition is unique, including, for example, on-demand fitting.
  • We will continue to invest in our Services proposition by scaling the number of customer touchpoints and broadening our services offering.

We are the only business in the UK able to offer Motoring Services in a retail store, a garage, at home or at work, providing our customers with unparalleled choice and convenience.

We have a proven strategy

Delivering value in the short term:

  • The accelerated shift to online was enabled by our investments in a new Group web platform and our best-in-class digital operating model in Autocentres.
  • We capitalised on the cycling tailwind by leveraging our relationships with suppliers to meet unprecedented demand and significantly improving the profitability of the category.
  • We have made good progress against our strategic priorities, with strong momentum continuing in a challenging operating environment.

Ensuring success in the long term:

  • Our strategy will see us develop into areas with good long-term growth prospects such as motoring services, B2B and electric mobility.
  • The UK's motoring service market is highly-fragmented with no clear market leader, and one in which we have some unique advantages.
  • The integration of our physical and digital assets, such as stores, garages, vans and home delivery, will provide even more convenience for customers.

Growth of Group online sales

+110%

Group Service-Related Sales growth of

+23%

We have a strong culture

Delivering value in the short term:

  • Our colleagues are at the heart of our business and have passion, dedication and a 'can do' attitude, making them the foundation of our long-term sustainable success.
  • We have prioritised colleague safety, supporting them throughout the pandemic in return for their unwavering loyalty and dedication to our customers. Our strong performance can be attributed to the strength and skillset of our colleagues.

Ensuring success in the long term:

  • We motivate and incentivise our colleagues to 'inspire' and 'support' our customers with their motoring and cycling needs and deliver best-in-class training via our in-house training programmes such as 'Gears' and E-training.
  • We continue to invest in our colleagues' wellbeing and ensure they are fully engaged to drive our long-term sustainable growth ambitions.

Autocentres Net Promoter Score improved by

+3.8 points

Offering free checks and discounts to

480,000

NHS workers, teachers and Armed Forces staff

Our status as an essential retailer was a clear endorsement of the wider role Halfords plays in keeping the UK moving, by continuing to offer products and services to those who needed them. Our Retail stores, despite initially being closed, delivered free checks and discounts to over 480,000 key workers and were a vital way for customers to get access to bikes and cycling services during a period of unprecedented demand. Growth in our Mobile Expert vans proposition meant we were also able to provide services in a safe, contact-free and convenient way.

Read about our response to the COVID-19 pandemic in Our Response to COVID-19.

Our Integrated Report

This is our seventh integrated report and is designed to provide a concise overview of how we generate value for all stakeholders. By following an integrated reporting model, we aim to show how our competitive advantage is sustainable in the short, medium, and long term. Whilst this report focuses on value generation for our shareholders, it also demonstrates how we interact with all stakeholders.

Corporate Website

Catch up with our latest news and learn more about Halfords on our corporate website: www.halfordscompany.com