In November 2015 we launched the 'Moving Up a Gear' strategy.
This strategy was an evolution from the previous 'Getting into Gear' strategy and comprised five pillars.
We have set-out below a description and the objectives of each strategic pillar, together with achievements over the last 3 years.
Putting Customers in the Driving Seat
Investing in customer data and insight capabilities to maximise the lifetime customer value
- Improve understanding of our customers
- Combine our pools of customer data into a single view
- Leverage customer data to gain insights and tailor offers
- Refresh brand positioning to create a more emotional connection
- Address areas where we may be underperforming
- % of sales matched to customers in Retail improved from 3% to 59%; foundations built to increase relevance to customers
- More personalised email marketing, including product recommendations
- Utilising data for customer insight
- Mix of eReceipts, tokenisation and improved data matching powering our 'single customer view' database
- Colleague headsets rolled-out across the store estate supporting better customer service and colleague knowledge sharing
Service in Our DNA
Halfords has been through a service revolution and now we need to embed it in how we do business. Our ability to offer great service is one of our key differentiators
- Maintain 3-Gears training programme and increase emphasis on service and selling skills
- Develop talent throughout the Group, including through our Aspire and Apprenticeship programmes
- Reward skills through enhanced pay
- Grow service-related sales
- 10 new Retail services launched taking the total to over 70 in-store services
- Over 70% of colleagues trained to 'Gear 2' level, up from 46% three years ago
- An average of eight 'Gear 2' trained fitters per Retail store, to meet customers' servicing and repair requirements
- Service-related Retail sales +46%
- Significant increase in colleague retention across Group
- Received 9th place in the 'Best big companies to work for 2018' up 9 places in 3 years
- Colleague training in dash cam fitting and e-bike maintenance
Building on Our Uniqueness
Exclusive products, relevant innovation, unique partnerships and collaborations
- Maintain and develop a pipeline of relevant innovation
- Nurture and complement our partnerships and collaborations
- Exclusive product ranges
- Launch of own-brand ranges including Carerra electric bike and Halfords dash-cam
- Acquisition of Tredz enabling the group to cater for all types of cycling customer
- Growth in trade sales supported by an enhanced central support team and ability to use trade cards online
- Launch of Boardman Performance Centre
Better Shopping Experience
A seamless customer experience, online as well in store
- Update stores using our evolved store refresh concept
- Continual improvement of our online and fulfilment propositions
- Launch a transactional website for Cycle Republic
- Continue to target growth in areas where we have relatively low market share
- 78 stores refreshed in various formats, including development of 'high street' and 'light' versions of the latest refresh format
- We have started to take a more agile approach to web development; recent improvements include 'personalised shopping' or 'frequently bought together with' tools
- Increased mobile participation in FY18 with traffic up 14% and order values up 30%
- Halfords Mobile Expert trial launched, as we trial and learn about how we may offer fitting services on a mobile basis
- We now have 20 Cycle Republic stores and in Summer 2016 launched a transactional website
Fit for Future Infrastructure
Moving from fixing the basics to improving efficiency and fulfilment
- Maintain short-term stability of our supply chain operations through peak periods
- Review and identify the long-term requirements for our supply chain
- Turn our IT investment focus to developing value-adding colleague and customer-facing IT applications
- Continue our strategy of right-sizing, relocating and renegotiating leases upon expiry
- 3 distribution centres (Daventry, Coventry and Washford) well embedded and operating to plan, coupled with a change from 5-day to 3-day a week delivery
- Efficiency improvement programme 'we operate for less' delivering efficiency saving across the Group
- Electric / hybrid vehicle maintenance training in Autocentres
- More 'store-friendly' deliveries introduced to optimise unpacking of stock by store colleagues
- Single view of stock supporting customer visibility of stock availability
Fast fact
46%
increase in service related Retail sales over three years
Fast fact
20
Cycle Republic stores now operational