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Birmingham Post
Birmingham Post
Business
Hannah Baker

Halfords planning to reopen stores but is changing way it operates

Car parts and motoring retailer Halfords has said it is planning to reopen some of its stores later this week.

The business, which is considered 'essential' by the government and is legally allowed to be open, is working on a plan to provide "partial store coverage".

The retailer is currently operating online and is running its autocentres and mobile vans.

Halfords said: "We’re fundamentally changing the way our stores operate. Essentially, we won’t be inviting customers into our stores, but providing services and collection from the front of store, all within the social distancing rules. 

"Obviously we have also asked colleagues in the most vulnerable groups to stay at home, and can confirm we will only continue to operate this service while we believe it is safe to do so for our colleagues and communities."

The retailer, which is headquartered in Redditch in Worcestershire, said it would also be offering a "drive in, fit and repair proposition" for essential motoring and cycling services and a "drive in pick or collect point" for products.

'We are re-shaping how our stores serve local communities'

Graham Stapleton, chief executive of Halfords Group plc, said: “I am really proud of our colleagues and how they are supporting us in our commitment to playing our part in keeping the UK and Ireland moving. 

"However, we will only continue to play our role if we can ensure the health and safety of our colleagues and customers, and compliance with government policy.  That’s why we are re-shaping how our stores serve local communities across Britain."

The news comes as the retailer suspended its dividend in a bid to shore up its finances. The company has predicted a 25 per cent drop in sales amid the coronavirus outbreak.

Shares rose 4.5 per cent following the dividend suspension announcement.

Sophie Lund-Yates, equity analyst at Hargreaves Lansdown said: "[Halfords] is responsible for maintaining some very important vehicle fleets, including the Ministry of Defence.

"That means we can expect a certain stream of revenue to keep flowing through the difficulties and gives the group an edge over peers who’ve been forced to shut down completely.

"What will be important is making sure the group gets the balance right between providing enough of a stripped back, essential service and not firing on too many cylinders while customer traffic is a lot slower than usual.”

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