Halfords Faces Uncertain Future Amid Consumer Spending Hesitancy

Economic uncertainty and impending tax changes prompt cautious consumer behavior, impacting Halfords' sales outlook.

Halfords reported a slight decline in like-for-like sales by 0.1% for the six months ending September 27, compared to the previous year.
The company's retail division saw a 0.7% decrease in sales, attributed to a wet spring affecting leisure cycling demand.
Despite the downturn in retail, Halfords' Autocentre service division experienced a 0.8% increase in sales due to strong demand for vehicle services and repairs.
Halfords plans to implement £30 million in savings this year to counteract anticipated £35 million in inflation costs.
Analysts note a shift towards budget ranges and increased promotions, with big-ticket items facing sluggish sales as consumers remain cautious.