The Works shuts online sales to double down on profitable store growth

TheWorks.co.uk plc ( (GB:WRKS) ) has shared an update.

TheWorks.co.uk plc has decided to shut its loss-making online sales channel with immediate effect and replace it with a non-transactional website that showcases products and drives customers into stores. The move follows persistent operational issues with third-party fulfilment partners and the online arm’s shrinking, sub-10% sales contribution, leading the board to judge the e-commerce business unsustainable.

Refocusing on physical retail is expected to simplify the operating model, reduce costs and free capital to expand the profitable store estate by up to 100 locations, with net openings planned in FY26 and FY27. While the company expects around £2m in exceptional closure costs and a small near-term cash impact, it is maintaining FY26 profit guidance and upgrading FY27 targets, projecting stronger EBITDA as online losses disappear and margins improve.

Management says the decision supports the longer-term ‘Elevating The Works’ strategy and its goal of delivering at least £22.5m of EBITDA by FY30 from a smaller sales base. This signals a deliberate retreat from e-commerce in favour of a pure bricks-and-mortar model, underlining confidence in store-led growth and offering investors a clearer, margin-focused path to returns despite short-term restructuring charges.

The most recent analyst rating on (GB:WRKS) stock is a Buy with a £41.00 price target. To see the full list of analyst forecasts on TheWorks.co.uk plc stock, see the GB:WRKS Stock Forecast page.

Spark’s Take on WRKS Stock

According to Spark, TipRanks’ AI Analyst, WRKS is a Neutral.

Overall score reflects mixed financial quality (notably high leverage and weak profitability) offset by strong cash generation, with supportive technical uptrend but overbought signals, and a very low P/E providing valuation upside potential.

To see Spark’s full report on WRKS stock, click here.

More about TheWorks.co.uk plc

TheWorks.co.uk plc is the UK’s leading specialist retailer of affordable, screen-free activities for families, offering value products across arts and crafts, stationery, toys and games, and books. The group operates a network of more than 500 stores across the UK and Ireland, with over 90% of its sales generated through this bricks-and-mortar estate rather than online channels.

Average Trading Volume: 180,910

Technical Sentiment Signal: Buy

Current Market Cap: £23.06M

For detailed information about WRKS stock, go to TipRanks’ Stock Analysis page.