Retailer to create 600 jobs as it launches five-year expansion plans
Discount retailer The Works has launched a massive expansion drive as it prepares to add 250 stores in the next five years.
The Works currently has 398 stores and is going to invest £5.3m in the next year as it plans to open 60 stores and create 600 jobs. A further £1m will be spent on rebranding and refurbishing its existing store estate.
This builds on the £9m investment over the last year which has seen the Sutton Coldfield-based retailer open 63 stores and a new purpose-built store support office and distribution centre in the West Midlands.
“These are exciting times for The Works,” said Kevin Keaney, chief executive of The Works. “Our discount proposition, coupled with our huge range of exciting products, is proving a real hit with consumers and helping us to continue rapid growth even when overall spending confidence is low.”
The company’s most recent accounts, for the year to April 2016, were hailed as “the most profitable year in The Works history”.
Sales were up 9% on an annualised basis, to £154.4m, with profits up 37% as it recorded an EBITDA of £12.7m.
The company, which sells arts & crafts, books, toys and stationery, has enjoyed strong on and offline growth.
The Works chief executive Kevin Keaney
Keaney added: “In contrast with many other retailers, we’re seeing surging sales on the high street, with plans to grow our estate by a further 60 stores over the next 12 months. We’re also experiencing fantastic growth online, with online sales growing by 35% over the last year.
“We’re bucking the trend and committed to sustaining this growth through further investment over the next 12 months and beyond, as we deliver our plan to become one of retail’s best growth stories.”
It plans to grow its estate to 650 stores by 2022 as the retailer looks to significantly grow its customer base, which in 2016 saw 28m people shop in its store and 19m people visit its website.
Its new distribution centre has tripled its warehouse capacity and is capable of supporting 1,000 stores.
Leeds-based PE house Endless invested in The Works in 2008 and went on to become the majority shareholder in 2015 after taking the stake of executive chairman Anthony Solomon.
He was replaced by Card Factory founder and Huddersfield Town chairman Dean Hoyle, in his first major retail industry position since the sale of the retailer to Charterhouse Capital in 2010.
