𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Books, stationery, and crafts retailer The Works has ceased all sales through its online shop, a division it described as loss-making, in a strategic move that saw its shares jump significantly on Friday morning.

The company announced the immediate closure of its transactional website, opting instead to refocus its efforts on its network of physical stores across the UK.

While an online presence will be maintained, it will become “non-transactional,” serving primarily to display products and guide customers towards in-store purchases.

The group cited persistent operational challenges, stemming from its reliance on two different third-party fulfilment partners, as having “significantly impacted” its online performance over the past two years.

These difficulties, it explained, ultimately outweighed any progress made in its digital operations.

Following an assessment of various options for the struggling division, the board concluded that the online shop was “no longer sustainable,” leading to the decision to shut down its sales functionality.

Bosses said shutting down online sales will lead to closure costs of around £2 million.

It added the deal, which is understood to impact a very small number of employees, will have a “small” negative impact on its cash position in the current financial year.

The Works said the move is likely to be cash flow positive in the longer term.

Bosses said the chain is continuing to deliver strong trading in stores, with like-for-like sales up 3.3 per cent in the year to date, with earnings set to meet current forecasts.

It also hiked its earnings guidance from £12.7 million to £15 million for the next financial year due to improvements in the core shops business and the removal of online losses.

The retailer’s strategy will see it focus on continuing to grow its high street stores business.

The Works is opening five net new stores this financial year, after highlighting the potential scope to open as many as 100 more sites.

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 focusing on our successful bricks-and-mortar business is the right step to reduce risk, improve operational clarity and support long-term profitable growth.

“A website that enables customers to browse our products and seek inspiration will help to bring our brand to life and drive customers to our 500 stores.”

The Works shares lifted by 13.8 per cent on Friday morning.