The Works hails strong in-store performance
The Works said its stores delivered strong growth in the 26 weeks to 2 November, as the retailer of screen-free activities benefited from new strategic initiatives.
Accounting for over 90% of total sales, store sales increased by 4% on a like-for-like basis as trade was boosted by new products landing across all categories.
Online like-for-like sales declined by 36% as online capacity continued to be constrained by operational challenges faced by a third-party fulfilment provider.
Subscribe to TRBWhile total sales edged down 0.3% to £123.8 million, the retailer posted an adjusted pre-tax loss of £5.1 million for the half year, reduced from a loss of £6.5 million a year earlier.
During the period, The Works strengthened its brand marketing by focusing on campaigns that encourage families to spend quality time together away from screens. It also launched new products designed to enhance its appeal throughout the year.
Gavin Peck, chief executive of The Works, said: “At the heart of everything we do is our mission to become the favourite destination for affordable, screen-free activities for the whole family. This has never been more relevant given the digital age we all live in and our action to deliver this in the current financial year has been well-received by customers, existing and new.
“The strategic initiatives delivered in the first half of the financial year have been critical in driving a strong performance in-store and an improvement in profitability year-on-year. Along with the wider sector, we have felt the impact of a challenging consumer backdrop, however we continued to see a positive response to our excellent value and new products over the festive period.
Giving an update on trading in the first 11 weeks of its second half, the retailer said like-for-like sales were up 1.2% in stores, while disrupted online sales declined by 51.8%.
The Works said it remains on track to deliver full year adjusted EBITDA of £11 million, in line with market expectations.
Peck said: “Guided by our strategy, alongside the hard work of our colleagues and support of our loyal customers, we are well-positioned to deliver sales and profit growth in the remainder of the financial year and beyond.”
