The Works, a mecca for lovers of cheap books, toys, and art and craft materials, is to implement a major CRM system as part of plans to boost sales by almost 50% in the next three years.
It is not yet known whether the discount retailer is looking to appoint an outside agency to run the business or handle it in-house; the company launched a loyalty scheme last year.
The three-year growth strategy follows a strong trading performance in the 12 months to April 30, when like-for-likes including online revenue grew 7% and EBITDA surged 47% to £8.2m.
Total sales were up 5.5% to £141m, and the firm hopes to increase that to £200m by the end of 2017.
Chief executive Kevin Keaney outlined a number of initiatives to drive sales including store openings, remodeling the existing estate and online improvements. Books represent 48% of sales, down from 55% three years ago, and Keaney is keen to expand the company’s offering.
He said: “The rebalancing of our range towards gifts, art and craft and stationery has been key to our strong sales and profit growth.”
Online sales represent just 7% of revenue, although the 300-plus store operation aims to boost this to 15% within three years. Keaney added that it will launch a click-and-collect service and a mobile app in the near future.
Meanwhile it is also planning a major store overhaul. “We want to make sure The Works is more fun and exciting and to lose the library look,” said Keaney.
The Works is owned by Anthony Solomon and private equity firm Endless.
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