Separating fluke from substance is the key challenge in determining the longevity of so-called pandemic winners. Take Halfords, for example: investors have grown circumspect about the chain since the summer, wary of rising supply chain and inflationary pressures. Its shares have fallen by more than a quarter from a five-year peak hit in July. Yet an increase in underlying profit guidance for this year to between £80 million and £90 million, from at least £75 million expected in June, has helped the credibility of its shift towards higher-margin services and business-to-business sales.
The retailer’s services business encapsulates garages, mobile service vans, commercial fleet services and in-store bike and vehicle repairs. Revenue from that segment has risen by three quarters on a two-year basis, via
