The Works shuts down ecommerce website with immediate effect

The retailer said its ecommerce site had faced “operational challenges experienced by two different third-party fulfilment partners” over the last two years, which had “significantly impacted the channel’s performance in the last two financial years, outweighing the progress made”.

Given these issues, and the fact that stores drive over 90% of The Works’ sales, the retailer said it had “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”.

The retailer said it would continue to operate a website, but that it would act as a digital “shop window” to its stores, “enabling customers to browse its extensive value range of arts and crafts, stationery, toys and games and books online, and provide ideas and inspiration for customers to connect through affordable, screen-free activities for the whole family”.

The Works also said this transition will “sharpen the group’s focus on its core strength as a successful bricks-and-mortar retailer by simplifying its operating model, reducing operating costs and freeing up capital to invest in its growing and increasingly profitable store business”.

The retailer said stores are in like-for-like sales growth and that it has scope to expand its physical footprint by a further 100 locations, with five net new stores set to open in the financial year.

Closing down its transactional website will cost The Works around £2m, it said, which will be recognised in this financial year. The company said it would also have a “small negative impact” on the group’s cash position for the year, but will be “broadly neutral by the end of FY27”.

The Works said like-for-like sales in stores are up 3.3% in the year to date and it is on track to delivery EBITDA of £11m, in line with current expectations.

Full year EBITDA guidance for FY26 is expected to be £13.5m. FY27 EBITDA guidance has been upgraded from £12.7m to £15m.

Chief executive Gavin Peck said: “We have reached this decision after a thorough assessment of the options available and are confident that focusing 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.

“Our mission – to become the favourite destination for affordable, screen-free activities for the whole family – has never been more relevant and this, combined with ongoing delivery of our Elevating The Works strategy, means we are well-positioned to achieve significant and profitable growth in the years to come.”