Key facts
- The Works CEO Gavin Peck attributes recent sales growth to a government crackdown on social media.
- The retailer has focused on "screen-free activities" as part of its business strategy.
- The Works reported 3.3% sales growth and a 44% increase in adjusted profit to £7.2m.
- The company ceased online sales to concentrate on expanding its physical store footprint.
- The Works is considering acquiring former TG Jones store locations.
The chief executive of discount retailer The Works, Gavin Peck, has stated that government initiatives to reduce social media usage among young people are contributing to increased sales of "screen-free activities" in his stores. Peck believes the incoming social media ban for under-16s, announced by former Prime Minister Sir Keir Starmer, is heightening public awareness of the negative impacts of excessive screen time.
This strategic shift towards promoting analogue activities aligns with The Works' recent rebranding efforts to position itself as a leading destination for family-friendly, screen-free options, moving away from its previous "pile it high, sell it cheap" image. Peck noted that sales performance, particularly over the last six months, indicates a growing demand for such products.
On Thursday, The Works reported a 3.3% increase in sales, reaching £260m in revenue, with adjusted profit rising by 44% to £7.2m. This performance follows the retailer's decision 18 months ago to place a "screen-free" positioning at the core of its business strategy, which Peck stated has led to higher engagement and stronger sales.
In March, The Works discontinued online sales to concentrate resources on its plan to open over 100 new stores, as online sales previously accounted for less than 10% of its revenue and never yielded a profit. Peck indicated that shareholders were supportive of this decision.
Peck also called for broader reforms to business rates for the retail sector, arguing that the current system is based on outdated property values and disproportionately burdens the industry. He expressed interest in acquiring former TG Jones store sites, which are becoming available due to that retailer's restructuring and planned closures.