Discount giant The Works recently announced that it was shutting down its ecommerce operations to focus on its store-led growth.
The move might seem surprising in 2026, but actually, as we’ll explore, it’s a decision grounded in sound logic for a brand like The Works.
Ditching ecommerce may seem out of step with the general trends we’re seeing accelerate this year, with the rise of AI and agentic-centric shopping experiences, the steep rise of social commerce and a high projection of growth in general ecommerce before the end of the year.
Sales in the ecommerce market are projected to hit a staggering £2.91tn ($3.88tn) worldwide this year, according to statistics platform Statista. Meanwhile, the number of users in the market is expected to reach 4.1bn by 2030.
Generative AI is also becoming a major player in ecommerce. Earlier this month, data from Kantar found that a third of consumers would be willing to buy directly through ChatGPT and other generative AI platforms, rather than clicking through to a retailer’s website.
Of course, the high street continues to struggle amid this backdrop. During 2024, nearly 13,000 shops – roughly 37 per day – closed across the UK over the year.
Despite this, bricks-and-mortar is still by a vast margin the preferred way to shop for the majority of consumers, with 80 per cent of shopping still occurring in physical stores as of 2025.
The start of the year also saw various UK retailers investing in new stores. In January, real estate agency Knight Frank reported “the pendulum of investment” in retail was “swinging back towards physical stores,” and noted there were “growing signs to suggest that structural change in retail may finally be playing out”.
Additionally, CI&T’s recent ‘Retail Tech Reality Check’ report pushed back on the assumption that physical stores were fading into irrelevance.
Operating without an online arm is clearly a viable option for some retailers. Poundland is one brand that recently stopped its online sales, closing its loyalty app in September as it sought to simplify the business under its turnaround strategy.
Meanwhile, discounters Aldi and Lidl continue to perform strongly in the UK without running ecommerce operations. The German grocers both recently reported their “best-ever” Christmases, as Lidl held onto its title as the UK’s fastest growing bricks-and-mortar supermarket.
There are undoubtedly ways in which ecommerce offers experiences that bricks-and-mortar stores cannot, such as 24/7 global accessibility, customer reviews and unlimited shelf space. However, as GenAI and ecommerce gain more and more traction, physical stores may be able to leverage this and provide some welcome relief from the digital world to shoppers.
In a highly crowded landscape, it’s vital that retailers invest in the right areas to do so.
Creating a seamless omnichannel experience
One way for physical stores to compete is by ensuring customers receive a seamless omnichannel experience. This model has shifted to become expected, rather than optional in recent years.
According to a report from McKinsey & Company in 2023, 75 per cent of consumers want a seamless omnichannel retail experience, while most consumers also use at least three channels for each of their purchase journeys.
As Currys digital and omnichannel director Chris Holyland recently explained to Retail Gazette: “Seamless customer journeys demand that the brand is there with them. Right from that first touchpoint, we need to be there, helping, guiding, nurturing.”
For physical retailers, this means meeting shoppers on whatever channel they’re using, whether that be browsing social media, visiting your website, or shopping in-store.
Sephora is one retailer that delivers an impressive omnichannel retail experience. Customers are able to use the company’s app to scan items for reviews and tutorials in-store, while the brand also recently launched an app in ChatGPT under a US pilot. Meanwhile, online shoppers can book beauty services in-stores.
Likewise, Nike uses its app to learn shoppers’ preferences and curate a newsfeed with relevant product launches and enables customers to reserve products in-store.
Embracing experiential retail
Despite the convenience of ecommerce, there are some scenarios where bricks-and-mortar will always have the upper hand, such as offering experiential retail to customers. Flagship stores offer a great opportunity for customers to see, touch and try products before buying.
Beauty and cosmetics retailers are ideal locations for this, with Lush reigning as a master of giving shoppers hands on experiences in-stores. On the other end of the spectrum, Apple is famous for providing shoppers with experiential retail in shops, as customers are able to try pricey products before buying.
Optimising number of stores
In 2026, physical stores need to earn their place and make enough bang for their buck. For retailers, this means optimising their store estate remains important as ever.
According to a report by British Land in September, retail parks are the “winning format” for retailers due to their “combination of affordability, accessibility, and adaptability”.
The company noted that total occupational costs at retail parks were “highly competitive” compared to high streets and shopping centres, as affordability serves as a “major draw” for retailers.
Real estate giant CBRE also noted that rents would further increase in top locations, with retailers having to “confront intense competition for space on major Central London streets”.
So, there is certainly still appetite for physical stores in the UK, especially for a brand like The Works, which considers the experiential value of in-store its biggest asset. However, retailers must be ready to adapt to the changing landscape to avoid being eclipsed by ecommerce.
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