Halfords upbeat despite slowdown

Halfords says its business should prove resilient to the economic slowdown

Car accessories and bike retailer Halfords is defying the economic slowdown, saying profits for the first quarter have beaten its expectations.

The retailer said its car maintenance business had performed strongly and it had made an "encouraging start" to the financial year.

Halfords' goods are seen as relatively resistant to an economic downturn

Many retailers are struggling as consumers, faced with higher food and fuel costs, cut back on spending.

But Halfords said its business, particularly car maintenance, was a "defensive proposition".

Car maintenance is seen as defensive on the basis that people are more likely to repair their cars themselves in a downturn than use a garage.

"While not immune to the ongoing challenging retail environment, our market leading position, extensive ranges and unique service proposition continue to provide us with confidence," the company said.

In the 13 weeks to 27 June , Halfords said like-for-like sales increased 0.2% from the same period a year earlier.