THE RETAIL BULLETIN - The home of retail news
Home Page
News Categories
Christmas Ads
Commentary
Department Stores
Electricals & Technology
Entertainment
Fashion
Food & Drink
General Merchandise
Grocery
Health & Beauty
Home & DIY
Interviews
Property
Retail News
Retail Solutions
Shopping Centres, High Streets & Retail Parks
Sports & Leisure
Retail Events
THE Retail Conference 2022
Retail Women In Leadership 2022
Digital Transformation Strategy 2022 Part 2
Omni Channel Futures 2023
Upcoming Retail Events
Past Retail Events
Retail Insights
Retail Solutions
Advertise
About
Contact
Subscribe for free
Terms and Policies
Privacy Policy
The Works lowers full year outlook due to uncertainty in run-up to Christmas

The Works has cut its outlook for its 2023 financial year due to uncertainty about how people will behave in the run-up to Christmas during the… View Article

GENERAL MERCHANDISE

The Works lowers full year outlook due to uncertainty in run-up to Christmas

The Works has cut its outlook for its 2023 financial year due to uncertainty about how people will behave in the run-up to Christmas during the cost of living crisis.

In a trading update, the retailer said total sales declined by 1.3% year-on-year in its first quarter ending 31 July. While store like-for like sales grew by 1.4% in the period, online like-for-likes fell by 28.6%.

The discount book, toy and art materials retailer was the subject of a cyber security incident at the end of March where actions taken to secure the business impacted store and online trading.

Gavin Peck, chief executive of The Works, said: “We delivered a strong performance in FY22 and will report a better-than-expected profit, as well as reinstating the payment of a dividend.

“Since the start of the financial year we have faced the residual effects of the cyber security incident and increasingly challenging trading conditions.

“The progressive recovery of store trading throughout the period is reassuring and we are pleased with the resilient performance delivered considering the lower consumer confidence.”

The Works highlighted how the general market outlook has deteriorated since the beginning of the calendar year due to low consumer confidence and rising inflation.

It added: “It is not clear how long these market conditions will persist, which creates a heightened degree of uncertainty about how consumers will behave, particularly in the forthcoming Christmas shopping season, The Works’ most important trading period”

As a result of the uncertainty and a desire to maintain a more cautious approach, the retailer has now “materially lowered” its expectations for its 2023 financial year.

Peck added: “The Works is a remarkably resilient business and the group’s financial position remains robust. Although the near-term market conditions are very uncertain, we are confident that our ‘better, not just bigger’ strategy still has a lot more upside to deliver in the medium term.

“As a value retailer we are working hard to ensure that customers can continue to rely on The Works as a destination for good value products, as well as focusing on protecting our profitability as the cost of doing business continues to rise.”

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

THE NEXT EVENT

See all upcoming events

LATEST VIDEO

UKG LifeWork ALL: Register your place now to hear more. RETAIL HR 21 Sept LONDON
UKG LifeWork ALL: Register your place now to hear more. RETAIL HR 21 Sept LONDON

Watch video >