TheWorks sounds cautious festive note

TheWorks.co.uk reported an uptick in half-year sales on Friday, but sounded a cautious note ahead of the crucial Christmas season.

The retailer, which sells value arts and crafts, toys, books and stationery, said total sales in the 26 weeks 30 October rose 2.1%, or by 0.6% on like-for-like basis. Store trading was ahead 3.5% on a like-for-like basis, while online sales fell 16.9%, although they remain 50% above pre-Covid levels.

TheWorks said it had since benefited from strong demand for outdoor toys during the hot summer and a "record" back to school season.

Looking to the second half, however, it acknowledged that the cost of living crisis and weakening economic climate made spending hard to predict.

It said: "While we are pleased with the overall trading performance in the first half, and the resilience of our business and offering, we remain cautious with regard to how consumer spending might be affected by external factors such as higher inflation and interest rates during the key Christmas season, and the remainder of the financial year."

Expectations for the full-year results remain unchanged, however.

Gavin Peck, chief executive, added: "Our more customer-focused product proposition has continued to resonate, supported by the hard work and fantastic customer service delivered by our colleagues, helping to offset the challenging trading conditions being seen across the market.

"Although it is very difficult to predict what Christmas will look like this year, we believe that the great products and fantastic value we offer will be more important than ever, with families still looking to celebrate Christmas but in a more afford way."