TheWorks.co.uk PLC (LON:WRKS) has said its sales over the Christmas period plunged by a quarter due to the national restrictions imposed for the coronavirus (COVID-19) pandemic.
In the 11 weeks to January 10, 2021, the company said online sales soared by 70% but they were not enough to offset the losses from physical stores closures. While they were open, like-for-like sales growth was 24%.
READ: TheWorks.co.uk expects material hit from store closures
Meanwhile, the retailer posted an improvement in its interim losses thanks to better margins and cost savings, supported by government schemes such as business rates relief and furlough.
In the 26 weeks to October 25, 2020, TheWorks reported a loss before tax halved to £4mln from £8mln a year ago, though total revenue declined by 8% to £89mln.
However, like-for-like store sales jumped 10% as people turned to the group's ‘Beat The Boredom’ offer during lockdown which included art, craft, jigsaws and books.
The stationary and book shop chain also boosted its online proposition, launching a new web platform, significantly increasing fulfilment capacity and step-changing online profitability by reducing promotional activity, lowering marketing spend and driving efficiencies in fulfilment operations.
It also closed six stores and opened two new ones while delivering a further reduction in existing store rents.
The firm said it continues to focus on cost control through driving store and supply chain efficiencies, lower store property costs and lower discretionary spend, alongside governmental support schemes.
The company ended the period with net cash of £11mln and TheWorks is not planning to pay a dividend.