The Works, which operates around 500 UK stores, has seen more than 90% of its sales completed at its physical outlets, according to The Works. This dominance in brick-and-mortar retail comes as the company faced operational challenges that impacted its online performance over the past two years. According to the company, 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.
The closure of online sales will result in exceptional closure costs of around £2 million, the company said. The transition is expected to have a small negative impact on the group's cash position this year.
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.
Despite the online closure, The Works is expanding its physical presence, with plans to open a net 5 new stores in FY26 and 10 more in FY27, according to The Works. The company's like-for-like sales are up 3.3% year to date, according to The Works.
Financially, The Works raised its earnings guidance from £12.7 million to £15 million for the next financial year, according to The Works. The company expects to reach its medium-term target of at least £22.5 million in 2030 with lower sales than the original £375 million goal, according to The Works.
We're now an in-store only retailer. Find everything you love in one of our 500 stores.
Market reaction was positive, with The Works' shares jumping 13.8% on Friday morning, according to The Works. The move to close online sales will impact a very small number of employees, according to The Works.