The retailer of car parts, touring, mobility and bicycles will be creating 1,000 new jobs despite a 27% drop in annual profits.
Halfords said that in the year ahead it is looking to invest in key areas of growth, including cycling, fitting services and Autocentres, which will accelerate its transition to a “contemporary solutions provider”.
In its preliminary results, the group reported a fall in profits to £92.2 million and a 2.3% drop in retail sales to £752.3 million for the year to March 30.
Halfords admitted that retail sales “have been very disappointing so far”. The company blamed the fall on a lack of demand for cycling and outdoor leisure products.
David Wild, Chief Executive of Halfords, commented on the results:“In a challenging consumer environment we have made good progress in our key growth areas of Leisure, including Cycles, Fitting Services and Autocentres. Our success in these categories and our detailed market research demonstrates how customers appreciate the help and value we offer and our opportunity for further growth.
“As a result we are evolving our strategy to focus on three strategic pillars so that we become the Friend of the Motorist, the Best Cycle Shop in Town and the Starting Point for Great Getaways. In each of these areas we believe we have a unique end to end solution and are well positioned to increase our share in significant markets.
“Halfords continues to be profitable and strongly cash generative and we are seeking to maximise our performance in this demanding retail environment."