Halfords has launched a drive to fill 1,000 technician roles over the next 12 months by targeting more female and retired recruits, as the UK’s tight labour market pushes employers to think up new hiring strategies.
Announcing a halving of interim profits as customers cut discretionary spending amid the cost of living crisis, the motoring and cycling retailer warned that its full-year results would be at the lower end of expectations.
However, it said inflationary pressures had also boosted membership of its motoring loyalty club from drivers keen to cover the soaring cost of running a car.
Its chief executive, Graham Stapleton, said: “To help meet that demand, we are today launching a recruitment drive to fill 1,000 new automotive technician roles over the next 12 months. In particular, we are hoping to attract retirees back into the workforce, as well as increasing the number of women in technician roles.”
Industries across the UK are facing a labour shortage, with the unemployment rate at its lowest level since 1974 in October, large numbers leaving the workforce through early retirement and long-term sickness, plus the impact of lower migration levels after Britain left the EU.
In its interim results, Halfords, the UK’s largest provider of motoring services, with more than 600 garages and almost 700 vans, reported underlying pre-tax profits of £29m for the six months to 30 September, down from £57.9m a year ago.
Revenues rose 10.2% to £765.7m over the first half, which was primarily driven by the Autocentres part of the business that deals with car servicing and MOTs. However, its retail like-for-like sales were 6% lower year on year, with consumers reining in spending on bikes.
Halfords said since the first half there was “resilient trading in the more needs-based categories but there has been a softening in the more discretionary areas”.
It added: “It remains challenging to predict consumer confidence for the remainder of 2022-23 but we don’t expect the challenges that businesses are facing to dissipate soon.”
The group is now expecting full-year underlying pre-tax profits to be at the lower end of its previous guidance of between £65m to £75m.
Matt Britzman, an equity analyst at Hargreaves Lansdown, said: “Halfords’ decision to focus on building its more reliable service revenue stream couldn’t have come soon enough, as consumers battling cost pressures are moving away from more discretionary spend.
“This trend’s particularly visible within Halfords’ once-booming cycling division, where sales are coming back down to earth after the pandemic boom.”
