Particle.news
Download on the App Store

The Works Shuts Online Sales and Refocuses on Stores After Fulfilment Failures

The retailer will replace e-commerce with a shop‑window website to channel investment into its profitable high-street estate.

Overview

  • The website has been switched to a non-transactional showcase with immediate effect to drive customers to stores.
  • Management cited two years of operational problems at third-party fulfilment partners that left the online channel loss-making.
  • The company expects about £2 million of exceptional closure costs and a small negative cash impact this financial year.
  • Guidance was raised as online losses are removed, with adjusted EBITDA for continuing operations restated to £13.5 million this year and FY27 targeted at £15 million, up from £12.7 million.
  • The strategy centers on store growth, with over 90% of sales in shops, five net openings this year and 10 next year with scope for around 100 more, while shares rose about 13.8% and only a small number of roles are affected.