1. News
July 14, 2020

UK cycle and car parts retailer Halfords to close up to 60 stores

UK motoring and cycling products retailer Halfords Group is reportedly set to shut up to 60 stores and garages.

UK motoring and cycling products retailer Halfords Group is reportedly set to shut up to 60 stores and garages.

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Following the closure, Halfords expects to shift its staff to other branches. However, it may result in hundreds of job losses.

The decision could be in line with its planned closure of up to 10% of the group’s physical estate across both stores and garages.

It already exited 22 Cycle Republic stores and five Halfords stores and garages this year, according to its preliminary results for the 53 weeks to 3 April.

The company has reported that its overall sales were -2.7% lower than last year and Cycling sales grew by 2.3%.

Headquartered in Redditch, West Midlands, Halfords has a total of 843 sites; 472 are stores while the rest are garages. It also has a further 75 mobile locations.

It employs nearly 10,000 people across the country.

Halfords was classified by the UK Government as an essential retailer during the Covid-19 pandemic crisis.

As of 3 July, 359 stores are trading under the ‘Lite’ format, eight under the ‘dark-store’ format and 77 remain closed.

The company has withdrawn guidance for FY21 although the group delivered better than anticipated trading performance in Q1.

Recently, Boots UK revealed plans to cut 4,000 positions or approximately 7% of its workforce due to coronavirus pandemic.

High-end department store John Lewis also decided to permanently close eight UK stores.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.