Discount retailer The Works has revealed a surge in profits and sales on the back of an overhaul of its stores and multichannel offer.
- EBITDA increases 15% as sales rise 11%
- The Works opened 18 new stores in the year
- Sales boosted by a new click-and-collect service and m-commerce site
The Works increased sales by 11% to £157m during the year ending April 2015, while EBITDA increased 15% to £9.3m.
The sales growth came as it opened 18 new stores to increase its store estate to 310 stores, while it also upgraded and rebranded its existing stores to make them easier to navigate.
During the year, The Works also launched a click-and-collect service and developed its mobile website, which helped double sales conversion on mobiles.
The Works chief executive Kevin Keaney said: “This has been another standout year for The Works, with the business continuing to deliver strong sales and profit growth from an increasingly high base.
“The strategy of focusing the business around a family-friendly discount offering continues to pay dividends, and we’ve also managed to accelerate innovation and investment levels across our business while at the same time increasing profits.”
Plan to boost sales
The Works is in the midst of a three-year plan it unveiled last June as it seeks to increase sales by 50% as it extends its offers beyond its books origins.
Keaney added: “This has been a landmark year for building on the foundations laid in 2013 and achieving many of the goals we set out around multichannel investment and our Together Card programme.
“2015 will see us continue to build momentum in our loyalty programme and ecommerce, as well as accelerating our store opening programme, with at least 30 new store openings planned for this year.”
The Works launched its Together Card loyalty scheme in late 2013 in a move it describes as a “discount sector first”.
The retailer is owned by Endless after the private equity firm bought out executive chairman and majority shareholder Anthony Solomon in May.
Endless now holds an equity stake of around 75%, while the rest is held by the management team and two undisclosed stakeholders.