The markets we operate in are large, robust and dynamic, providing a strong foundation for Halfords’ long-term growth and future strategy.
Motoring Services
- Halfords 3
- Kwik fit 3
- Other chains 3
- Dealers 25
- Independents 65
Motoring products
- Halfords 18
- Supermarkets 14
- Generalists 40
- Home and garden 14
- Specialists 8
- Other 23
Cycling
- Halfords 54
- Other chains 7
- Generalists 25
- Independents 20
Source: Halfords internal estimates
Key market trends
Electrification and transition to EV
Most cars on the road still have internal combustion engines ("ICE"), but the transition to electric is accelerating. EVs still need tyres, servicing and maintenance, creating growing demand for Halfords’ expanding capability.
Our response
Investing in EV and hybrid capability across our garage network, including technician training and specialist equipment
Expanding EV-related product and service ranges, ensuring customers can access support across the full vehicle lifecycle
Leveraging our national footprint to provide convenient, trusted servicing for both EV and ICE vehicles
Taking a balanced approach to EV adoption, recognising that while growing, EVs remain a minority of the UK car parc within the near‑term horizon
Future opportunities
Ensuring our proposition reflects the significant overlap in maintenance needs across all vehicle types
Scaling EV servicing capability in line with parc growth, supported by our national network
Developing additional EV-specific services, particularly in diagnostics and lifecycle management
Leveraging our trusted brand to support customers through the transition to electric motoring
Building partnerships across fleets, insurers and OEM ecosystems as EV adoption increases
Using customer and vehicle data to anticipate and respond to evolving EV
Ageing car parc and the shift to value
With the average UK car now over ten years old, more work is moving from dealer networks to value-driven aftermarket providers like Halfords.
Our response
Increasing focus on service, maintenance and repair, reflecting the structural shift towards older vehicles in the UK car parc
Prioritising delivery of consistent, high-quality service to support customers in extending vehicle life
Strengthening value-led propositions across products and services to support customers through cost pressures
Driving improved utilisation and operational efficiency across our garage network
Maintaining disciplined pricing and promotional strategies to balance affordability and margin
Future opportunities
Growing share in a structurally expanding aftermarket servicing segment
Increasing customer lifetime value through repeat servicing and ongoing maintenance relationships
Using data to support more proactive and preventative maintenance journeys
Strengthening our position as a trusted alternative to dealer networks for ageing vehicles
Delivering improved profit conversion through consistent operational execution
Convenience and “do-it-for-me”
Customers increasingly want trusted, hassle-free solutions that fit around their busy lives. Our national reach, digital tools and mobile service offer make us uniquely capable of meeting this need.
Our response
Accelerating the rollout of Fusion, bringing together Retail, Garages and mobile services into a single, integrated customer journey
Expanding mobile service capability to deliver convenient, at-home solutions
Improving digital booking journeys to make access to services faster and more intuitive
Strengthening connections across channels to create a more seamless, end-to-end experience
Leveraging our integrated model to reduce friction and deliver practical, “do-it-for-me” solutions
Future opportunities
Scaling a fully integrated service model across stores, Garages and mobile vans
Meeting growing demand for convenience as more customers choose “do-it-for-me” solutions
Increasing customer retention through simpler, more predictable service experiences
Driving higher utilisation of existing capacity through improved customer journeys
Continuing to differentiate through a unique, nationwide, service-led proposition
Needs-based, resilient markets
Halfords operates in predominantly essential, needs-based markets. While consumer confidence may fluctuate, motoring and mobility remain everyday necessities, providing stable and resilient demand.
Our response
Focusing on needs-based categories, particularly Motoring Services, which are driven by essential customer demand
Continuing to grow our services-led model, now representing over half of Group revenue
Expanding B2B and Fleet channels, providing more stable and predictable revenue streams
Maintaining strong cost discipline in response to inflationary pressures and market headwinds
Leveraging our trusted brand and national scale to remain a first-choice provider in essential categories
Future opportunities
Increasing exposure to resilient revenue streams through services, B2B and repeat customer relationships
Expanding into adjacent motoring categories where Halfords has clear permission to play
Leveraging scale to capture share in highly fragmented markets
Building a more predictable earnings profile through recurring and repeat revenue
Strengthening returns through improved utilisation and operational consistency
Digital enablement
Technology and AI are reshaping how customers engage with our business. Our digital platform provides the foundation to deliver smarter, more personalised and connected service experiences.
Our response
Investing in digital capability to improve the core customer journey, particularly search, navigation and booking
Enhancing integration between digital, stores, garages and mobile services to create a connected experience
Growing Halfords Motoring Club to deepen customer relationships and engagement
Improving data integration to support better availability, personalisation and decision-making
Focusing on fixing the fundamentals of the platform to support reliable, consistent execution
Future opportunities
Developing more personalised and proactive customer journeys, supported by improved data and CRM capability
Increasing digital conversion and attachment through a more seamless experience
Leveraging data to anticipate customer needs and drive repeat engagement
Supporting entry into adjacent markets through a stronger digital and data platform
Building a scalable, connected digital layer that underpins long-term growth
Our latest report
FY26 was a year in which we reset and refocused: with new leadership in place and the launch of an updated strategy and purpose, we focused on improving execution to drive a strong financial performance.