the works retail uk news — The Works has shut down its ecommerce operations with immediate effect to concentrate on its estate of more than 500 stores, saying the online channel was a small, loss-making part of the business. The retailer will convert its transactional site into a non-transactional showcase aimed at driving footfall, citing operational challenges with two third-party fulfilment partners. The move is presented as a step to reduce complexity and improve the group’s profitability and clarity of operations.
The Works Retail Uk News — Why the online exit happened
Management says the decision follows a channel review that found persistent operational issues tied to two third-party fulfilment partners and a relatively small revenue contribution from ecommerce. The Works will transition the site into a brand and product showcase, stopping online transactions immediately, a change the company describes as simplifying the operating model and reducing risk. The exit is intended to redirect resources to the physical store network where the company reports the majority of its sales.
Immediate impact on performance and guidance
The Works says the online exit should improve profitability in the near term. The group reaffirmed a pre-IFRS 16 adjusted EBITDA target of £11m for FY26 and restated continuing operations guidance at £13. 5m. Management upgraded FY27 expectations from £12. 7m to £15m after removing ecommerce losses from the outlook. The company flagged around £2m of exceptional costs tied to the closure, a small negative cash impact in FY26 that is expected to be broadly neutral by the end of FY27, and a longer-term expectation that the move will be cash flow positive.
Reaction from the chief executive and store strategy
Gavin Peck, chief executive of The Works, said: “We 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. ” He added: “Our mission – to become the favourite destination for affordable, screen-free activities for the whole family – has never been more relevant. ” The retailer notes that since launching ecommerce in 2012 more than 90 per cent of sales have continued to come from physical stores, reinforcing the decision to prioritise the high street estate.
The Works reports like-for-like sales up 3. 3 per cent year to date and intends to expand its store footprint with a net five new stores in FY26 and a further 10 in FY27. The company says this aligns with its ‘Elevating The Works’ strategy and a medium-term target of at least £22. 5m EBITDA by 2030.
Early responses inside the company frame the shift as pragmatic: shifting the online site to a non-transactional role will act as a marketing and discovery tool to drive in-store visits, while cutting the operational burden tied to third-party fulfilment. The works retail uk news will now be measured by how quickly store-led gains offset the removed online channel and deliver improved margins.
What happens next: The Works will implement the online closure process immediately and manage the £2m exceptional costs, while continuing to track like-for-like store trading and roll out planned openings. Management says it expects cash impact to normalise by the end of FY27 and will monitor store performance as the primary engine for growth under the “Elevating The Works” plan; the works retail uk news story will hinge on whether that store-first strategy delivers the improved profitability the company forecasts.
