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Retail chain The Works saw a like-for-like sales increase of 14.5% in the six months to 31st October 2021 compared to the same period in pre-pandemic 2019.
In a report published today, the firm said it recorded total two-year sales growth surpassing expectations of 17.9%, though it did not reveal further figures. Online sales were around double those of two years ago.
“The trading result reflects the increasing appeal of The Works’ proposition and the strong progress in implementing our strategy to make the business 'better not just bigger',” the retailer said. It added stock levels are expected to support Christmas sales thanks to “proactive management” of the supply chain, which has been undergoing strain in recent months.
The company said: “The early indications of Christmas sales are positive. However, the business is being affected by the widely reported shortages of ocean freight and UK haulage capacity. To minimise the impact of this, we made a conscious decision earlier in the year to secure the supply chain, as a result of which, we expect to have the stock we need in order to achieve our sales plans, albeit having incurred significant additional costs.”
It said a “refocused” strategy begun in July had seen it move emphasis away from new store openings in favour of profitable digital growth and driving improvements through its existing estate. The strong performance was partly attributed to improving the range and merchandising of arts, crafts and stationery categories, enhancing store layout and better stock management. A strong “back to school” performance had also helped.
The Works opened three new stores, closed five and relocated four stores, trading from 526 stores at the end of the period. It expects its full year result to be in line with its original expectations, despite incurring higher freight costs.
Gavin Peck, c.e.o. of The Works, commented: “It’s clear from these results that our products resonated extremely well with customers during the pandemic, helping them to read, learn, play and craft through lockdown. Our strong sales in recent months demonstrate that demand has been maintained and customers continue to value our offer. It’s particularly pleasing to see that whilst our online sales continue to run at almost double their pre-pandemic levels, store sales are also growing.
“Looking ahead, we have a fantastic range of products for our customers this Christmas with initial demand for them already very strong. We are cautiously optimistic about prospects for our peak sales season and our ability to trade through the ongoing supply chain challenges faced by the majority of our sector.
“As we celebrate our 40th year, I am proud of the business that The Works has become and of our colleagues who work incredibly hard to delight our customers and support one another.”
Interim results for the year and an update on Christmas trading will be announced on 21st January.