Halfords has become the latest retailer to witness a major boom in online sales, with a 52 per cent rise in ecommerce transactions, equivalent to 9.3 per cent of its total sales.
The company joins the likes of Laura Ashley, Next and Argos in seeing online sales shore up the business, although overall, turnover remained flat in the 13 weeks to April 1, the fourth quarter of its financial year, compared to the same time last year.
The update came in a pre-close trading statement that showed total retail sales were down by 6.7 per cent in the quarter, while turnover from its autocentres business rose by 2.1 per cent. Total retail sales fell by 6.8 per cent on a like-for-like basis, stripping out the effect of new store openings and closures. The company said the consumer environment was “difficult” but that it would reduce costs to boost profits. Areas of growth included cycle sales, up by 8.7 per cent.
Chief executive David Wild said: “We believe the environment will remain difficult for customers. We are responding with a trading strategy that offers great value, expert services and many new products, including the relaunch of our entire premium cycle range.”
The company predicted pre-tax profits of between £124m and £127m in the full year.
DLKW Lowe won the advertising account for Halfords last summer, in a pitch handled by The Observatory, against the incumbent, M&C Saatchi, Beattie McGuinness Bungay and VCCP.
