According to research conducted by Opinium for Halfords, 54 per cent of motorists are wrongly told they must get their vehicle serviced at a dealership to protect their warranty. The truth is that, under UK law, motorists can get their vehicles serviced anywhere from the moment they drive off the forecourt.
Halfords Groups reports that its “strong” first-half 2024 financial performance was driven by “substantial revenue and profit growth through increased market share” and “optimisation of our Autocentres business”. And that means we can expect accelerated capital investment in Autocentres moving forward.
Van rental company Redde Northgate has reportedly presented a £1.4 billion merger to Halfords. According to multiple reports, the two companies have held “detailed talks”. Redde Northgate owns 130,000 vans and corporate cars in the UK and Spain.
Financial analysts have responded positively to the news of Bridgestone’s investment in Halfords Group’s Avayler Software-as-a-Service (SaaS). Their analysis also reveals further details of the current scale and future plans associated with the Avayler business.
Bridgestone has invested US$3 million dollars in buying a 5 per cent stake in Halfords Group Plc’s Avayler Software as a service (SaaS) business. The investment therefore values the two-year-old Avayler business at $60 million. Under the associated commercial agreement, which has an initial term of 15 years notwithstanding certain break clauses, Avayler will provide Bridgestone with access to Avayler’s in-garage and van software products as well as certain services to facilitate Bridgestone’s use of it. These include services relating to maintenance, development, implementation and support. The commercial agreement provides for the roll-out of Avayler’s products across Bridgestone’s retail and van operation in the USA.
Yodel, one of the UK’s leading parcel carriers, has awarded a five-year tyre management contract to Halfords Commercial Fleet Services. Halfords Commercial Fleet Services’ position as the UK’s largest commercial service network with 104 depots and over 500 dedicated mobile vans was cited as a major factor behind decision.
Earlier this year we found that Halfords Autocentres is neck-and-neck with Kwik-Fit for the title of largest car tyre retailer in the UK, with 650 centres a piece. However, what that figure doesn’t tell you is just how influential the company’s commercial vehicle tyre business has become. Tyres & Accessories recently met up with Halfords Commercial Fleet Services director, Greg Ward in order to find out.
Following on from our analysis of the leading tyre retail web sites of bricks and mortar businesses, we now turn our attention to tyre e-tail operations. As it did in the retail side of things, Halfords once again tops this table, but with the integrated Halfords Autocentres name out of the equation, this time we were able to break down the component parts and quantify that traffic (see chart and separate breakdown column). That breakdown clearly shows two things: firstly, the scale of the different Halfords online tyre retail operations; and secondly, that Halfords acquisition of Axle Group Holdings/National Tyres brought significant online assets with it.
There’s no denying that the tyre business has become more digital and connected than ever before, but there are a number of sides to that equation. We know that between 60 and 80 per cent of tyre-buying consumers were doing pre-sale research online before the pandemic. Similarly, industry insiders have been saying that 10 per cent of tyres are bought online for something like a decade now. But anecdotal evidence from tyre retailers themselves reveals that, amongst those working for the large chains at least, many customers walk through the door to receive a tyre change that has already been booked online. Apparently, some of the younger generation just walk in and hold up a QR code on their phone! This month’s Tyres & Accessories looked into these kinds of questions, asking what it means for the tyre business to be digitally native. And it starts with a brand-new ranking of the leading tyre retail, e-tail and tyre comparison websites.
Halfords has attended its first on-ground tyre safety event, marking its tenth anniversary as a member of TyreSafe. The company provided free tyre safety checks to motorists in Blackburn on Friday 28 July at ASDA. Aiming to champion tyre safety and raise awareness of crucial tyre checks in the local community, 75 per cent of tyres received advisories, with perishing a major issue alongside the more commonly understood inflation and tread depth defects. Halfords has recently extended its involvement with the tyre safety organisation, appointing Morgan Jamison, its head of marketing, to the TyreSafe Steering Committee.
Halfords head of marketing Morgan Jamison has been appointed to the TyreSafe Steering Committee. TyreSafe said Jamison has a “wealth of experience and a deep understanding of the importance of how safe tyres impact on road safety issues.” In his new role, the tyre safety organisation said Jamison would “play a pivotal role in shaping strategic initiatives, fostering collaborations, and driving positive change within the industry.” He will also “play a significant role in shaping strategic initiatives, fostering collaborations, and driving positive change within the industry.” Halfords recently reached the 10-year milestone as a member of TyreSafe, which has been at the forefront of promoting tyre safety for more than two decades. It advocates for safe driving practices to ensure the wellbeing of road users through the collective effort of reducing collisions and injuries caused by defective tyres.
In late March 2023 Lodge Tyre’s Manchester operation opened new “bigger and better” premises. The “extensively refurbished” location in Mode Wheel Road South, Salford, Greater Manchester boasts over 7,500 square feet of internal space plus an extensive commercial vehicle servicing area.
There has been talk about closing the recruitment gap in the automotive aftermarket for years. More recently certain training bodies and associations such as the NTDA have taking significant steps to renew efforts to recruit and upskill the tyre and aftermarket workforce. Now, however, is clear evidence that these much-discussed issues are not just theoretical. Rather, the lack of skill people in the trade is affecting the ability to service already depleted demand, which is hitting profitability even amongst some of the largest, fastest-growing and most profitable tyre-selling businesses.
Halfords Group plc (Halfords)’s third-quarter 2023 trading update for the 13 weeks to 30 December 2022 show that group revenue grew 38.3 per cent and like-for-like group sales were up 12.6 per cent compared with 2020 levels. Other headlines included the news that Halfords’s services business represents 50.3 per cent of group revenue, and B2B, which includes the Avayler system 28.2 per cent. At the same time, Halfords hailed its “strong Commercial Fleet performance”, with this part of the business growing 138 per cent year-on-year. However, the company reduced its full-year 2023 underlying profit before tax (PBT) guidance from £60 million to £50 million.
Following earlier reports on 25 November 2022, Avayler, Halfords’ B2B software arm has confirmed that ATU has selected the Avayler mobile solution to support its new mobile servicing and tyre fitting division. Avayler Mobile will initially be rolled out in Munich as part of ATU’s “Mobile Workshop” pilot project, with further plans for expansion throughout Germany.
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