The Works sales slide as coronavirus restrictions take toll

In a trading update for the 53 weeks to May 2, 2021, The Works said total sales for the period declined 19% to £206.2m, which it put down to stores closures during the year, including over the peak festive trading period. 

The retailer noted that during the period, its entire 527-strong UK store estate was closed for 16 weeks and there were eight weeks when 75% of its stores were closed. 

However, the retailer noted like-for-like store sales for the period were up 6% and online sales grew 120.9% compared with the previous year. 

The Works said that immediately after the government announcement of the most recent lockdown in January, it revised its profit forecast. 

The retailer said it finished the period in a strong financial position with cash of approximately £7.5m during the year. It said since stores reopening, sales had been strong. 

The company said it would not be publishing its profit forecasts but added “due to its strong financial position, and the evident appeal of its proposition, the board is confident in the future prospects of the business”.

Chief executive Gavin Peck said: “Like many retailers, the last 12 months have been incredibly challenging for The Works, which has historically relied mainly on in-store sales. Our business was severely impacted by successive lockdowns and forced closures of our entire store estate.

“Despite this, the period has highlighted the resilience of the business and our ability to both adapt our offer and leverage our multichannel model. Since we couldn’t control store closures we focused on the things we could, keeping tight control of costs, optimising our operations and vastly improving our online offering. As a result, our financial position remained strong, online growth exceeded our expectations and when stores reopened we saw customer demand returning quickly to pre-Covid levels.

“I am incredibly proud of our colleagues who have supported each other so brilliantly and the unique culture at The Works that has enabled us to withstand this difficult year and emerge quickly and optimistically as a stronger business. Although uncertainty remains, particularly around the shape of the consumer recovery, the board expects the early progress to continue and remains confident in the future prospects of the business.”

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