he is the boss Halfords warned that the cost of living crisis was creating a “road safety risk” as drivers bought older cars and struggled with maintenance costs.
The warning comes after the car and bike retailer reported stronger sales over the past 20 weeks, helped by an expansion in its car repair business.
The retail group told shareholders on Wednesday that total revenues rose 9.2% in the 20 weeks to August 19 compared with the same period last year.
He added that sales were more than 30% higher than in the same period last year, supporting strong performance in the firm’s car center business.
The reliability of cars has improved in recent years, but there is no getting away from the fact that older cars break down more often, are more expensive to maintain and pollute the environment more.
Last December, Halfords expanded its car center operations by buying Axle Group, owner of tire service brand National, for £62m.
Bosses said on Wednesday that the company’s latest results were “in line” with expectations and were firmly on target for underlying pre-tax profits of between £65m and £75m for the current financial year.
He also highlighted “good progress” in meeting austerity targets and efforts to moderate inflation.
Graham Stapleton, chief executive of Halfords, said: “We are working very hard to help our customers cope with the cost of living crisis and have reduced prices on almost 2,000 car essentials, ensuring products remain affordable and accessible to everyone.
“Our Motoring Loyalty Club has also proved hugely popular and has already attracted more than half a million members since its launch in March, with benefits including discounts on maintenance and a free 10-point vehicle condition check, saving nearly £14m. directly back into the members’ pockets.
“More than 70% of our sales now come from automotive products and services, and the fact that this area of spending is driven more by need than by discretion is resulting in a very resilient group performance despite wider macroeconomic uncertainty.”
But Mr Stapleton warned that increased pressure on household budgets amid rising electricity bills could affect road safety.
“Based on what we’re seeing in our garages and taking into account the ongoing supply challenges of new cars, we believe that the average age of cars will break the nine-year mark very quickly and may even rise above 10 years before the value of the ‘Crisis of Life is Declining,'” said Mr. Stapleton.
“This is a real problem for secretary of state for transport.
“The reliability of cars has improved in recent years, but there is no getting away from the fact that older cars break down more often, are more expensive to maintain and pollute the environment more.
“This poses a risk to road safety, further pressure on motorists’ wallets and a threat to the UK’s emissions reduction targets.”
https://www.standard.co.uk/business/business-news/costofliving-crisis-creating-risk-to-road-safety-warns-halfords-boss-b1023701.html
