Unlock Exclusive Rewards and Boost Your Savings with Halfords Loyalty Scheme

Halfords is seeing positive results from its loyalty program, indicating its worth to customers. The company's 'Motoring Loyalty Club' has now surpassed 2.5 million members. As of March 2023, it had 1.7 million members, and this number increased to approximately 2 million by June.

Retailers informed investors today (6 September) that loyalty club members are exhibiting higher spending and frequency compared to non-members. According to the retailers, scheme members spend an average of £266 per transaction, while non-members spend less. The scheme was introduced in March 2022 and operates with two tiers. Members can choose between a free option or a paid subscription service that offers additional perks such as free MOTs and next-day delivery. All members gain access to exclusive discounts and offers.

Halfords disclosed in its full-year results that it had 125,000 paid members by the end of March, however, no update on the count of paid subscribers was provided in the latest report. Jamel Boughedda, a retail analyst at GlobalData, emphasized the significant role of Halfords' loyalty club in the future.

The retailer is aiming to attract new members and sustain high spending levels, despite consumers tightening their budgets, by implementing this programme. During the cost of living crisis, when discretionary spending is being reduced by consumers, the retailer is determined to maintain profits by offering value. In the 20 weeks leading up to 18 August, there was a 2.7% decrease in revenue from the retailer's "more discretionary" cycling business.

In contrast, Halfords experienced growth in its autocentres and motoring retail, which are considered "needs-based products". The revenue from its autocentres increased by 16.6% year-over-year.

Halfords achieved an overall revenue growth of 7.8% on a like-for-like basis due to the success of these "needs-based" categories. The company is committed to providing value in this particular area to sustain its growth.

“We remain committed to supporting our customers during this challenging cost of living crisis and are dedicated to providing them with unmatched value,” stated CEO Graham Stapleton.

The brand's motor repair services are a key avenue through which we aim to communicate this value. Today, we have launched the 'Deal or No Dealer' campaign, emphasizing the value of Halfords' services compared to those offered by dealerships. This campaign is backed by research indicating that car owners who opt for car manufacturers' franchised dealerships pay over 50% more for repairs compared to using independent garages and chains like Halfords.