The Works has stopped trading on its website with immediate effect as it doubles down on its bricks-and-mortar stores.
The retailer said it had switched to a ‘non-transactional’ website, saying that more than 90 per cent of its sales were completed at its physical stores, with plans to open 100 more.
It said that ‘operational challenges’ experienced by two different third-party fulfilment partners had ‘significantly impacted’ the group’s online shopping site performance in the last two years.
The extent of these challenges was ‘outweighing the progress’ it had made in pushing its online shop.
The Works, which sells books, arts and crafts supplies, stationery and toys across more than 500 UK stores, said its website would now act as a ‘shop window’ for the company’s shops and brand.
In an update to investors, it said: ‘Given these issues, the channel’s relatively small and reducing revenue contribution and loss-making performance, the Board assessed a wide range of options and has determined that the channel is no longer sustainable, with the optimal solution being to move to a non-transactional website.’
No more online shop: The Works has stopped trading on its website with immediate effect
The business said switching off its online shopping option would help it focus on its bricks-and-mortar portfolio, enabling it to simplify its operating model, ‘reducing operating costs and freeing up capital to invest in its growing and increasingly profitable store business.’
It added: ‘The store estate offers significant growth potential, with ongoing like-for-like (LFL) sales growth and scope to expand the Group’s footprint by a further 100 locations. A net 5 new stores are set to open in FY26, with a further 10 planned for FY27.’
The group expects exceptional closure costs of around £2million. The transition is anticipated to have a small negative impact on the group’s cash position this year.
Full-year guidance for this year remains unchanged at an adjusted EBITDA of £11million, restated to £13.5million for continuing operations once online losses are stripped out.
Full year 2027 guidance has been upgraded from £12.7million to £15million, reflecting both the improving core business and the removal of the drag from e-commerce.
The Works said it remained on track for its medium-term target of at least £22.5million in 2030, and now expects to reach it with lower sales than the original £375million goal.
Gavin Peck, chief executive of The Works, said: ‘We have reached this decision after a thorough assessment of the options available and are confident that focussing on our successful bricks-and-mortar business is the right step to reduce risk, improve operational clarity and support long-term profitable growth.
‘A website that enables customers to browse our products and seek inspiration will help to bring our brand to life and drive customers to our 500 stores.’
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