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The Works has announced it will stop selling products through its website with immediate effect to focus on its 500 bricks-and-mortar stores.
The retailer said the decision to move to a non-transactional website follows a review of the loss-making online channel. The board determined the channel was no longer sustainable due to its reducing revenue contribution and operational challenges with third-party partners.
The website will now serve as a digital catalogue for customers to browse products before visiting physical locations. The company plans to open five new stores in FY26 and a further 10 in FY27.
While the transition is expected to incur one-off closure costs of approximately £2m in FY26, the move is expected to be cash flow positive in the long term by reducing inventory levels and operating costs.
The group maintained its FY26 adjusted EBITDA guidance of £11m. For FY27, the profit forecast has been upgraded from £12.7m to £15m, reflecting the removal of online losses and improved store performance.
Like-for-like sales in stores have increased by 3.3% in the year-to-date. The company remains on track to reach a medium-term profit goal of £22.5m by FY30, despite anticipating lower overall sales than its original £375m target.
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.
“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.”
