The Works Boss Pivots to High Street Success After Closing Website

Gavin Peck, CEO of discount retailer The Works, has revealed that closing the company's website in March to concentrate on physical stores has been a "real positive." Peck stated that the website had become a "distraction" and that evidence suggests online customers are now migrating to brick-and-mortar locations.

Peck, who joined The Works in 2020, has been working to modernize the brand, which was founded in 1981 and operates over 500 shops across the UK and Ireland. He has focused on making stores more inviting and stocking relevant products, moving away from a reputation of "piling it high and selling it cheap." The company aims to appeal to a younger, "TikTok-savvy" generation and anticipates its "best Christmas ever."

The retailer is offering affordable alternatives, or "dupes," of popular toys such as Lego and Labubus. While acknowledging that children might prefer the authentic brands, Peck noted that it is not children who are making the purchasing decisions.

Books, a traditional strength for The Works, still represent a significant portion of sales, with the company holding an 11% market share by volume in the UK. The selection has broadened to include top-selling titles, with authors like Richard Osman and Freida McFadden now featured. The Works has also begun stocking Pokemon cards, a move made after initially abstaining due to concerns over staff safety related to trading card theft.

Peck is also advocating for government action to address a customs duty loophole that allows foreign online retailers, particularly from China, to avoid taxes on low-cost parcels entering the UK. He argues that this loophole creates an uneven playing field and allows unregulated products to flood the market, contrasting with The Works' commitment to product safety and quality assurance. The government has pledged to address this issue by October 2028, but retailers are pushing for faster action.

Peck's retail experience began in childhood, helping his aunt and uncle with their Spar franchise. After training as an accountant and working in corporate finance, he joined Card Factory as commercial director. He emphasized the value of understanding business operations beyond pure finance. His perspective as a father of young children also informs his product decisions, allowing him to stay connected to the company's offerings.

Challenges and Shareholder Relations

The company has faced other challenges, including concerns over business rates, which Peck described as potentially higher than rents for some shops. Additionally, The Works experienced a boardroom dispute over the summer with activist investor Kelso, which holds a 10% stake. Kelso had accused chairman Steve Bellamy of insufficient presence in the UK and proposed a new director for the board, but this plan was defeated at the company's annual general meeting. Peck expressed satisfaction that investors supported the board and indicated ongoing engagement with Kelso.