BookTok trend increases sales at The Works, but retailer warns cost-of-living crisis slows growth
- BookTok assumes that TikTok users publish clips on which they approve the books
- The retailer’s annual revenue increased by 12.7% compared to the same period two years ago
- Demand for Peppa Pig, Cocomelon and PAW Patrol has also helped increase revenue
The phenomenon, spread on the social networking platform TikTok, has been recognized by a large network of discounts for stimulating book sales in their stores.
The Works of Coleshill said the hashtag BookTok, which has been viewed more than 54 billion times, has boosted demand for titles on the front list and has sparked great customer interest in previous bestsellers.
BookTok assumes that users of the video sharing service publish clips in which they recommend books or demonstrate their reaction to reading certain books.
Online promotion: The Works says the hashtag “BookTok” has increased demand for titles on the first list and has aroused great customer interest in previous bestsellers
The company has also received higher orders for branded toys and games based on popular children’s cartoons, including Peppa Pig, the YouTube series Cocomelon and PAW Patrol.
Demand for these goods contributed to the fact that the total retail income for 52 weeks before the beginning of May increased by 12.7% compared to the same period two years ago, and revenue increased by 10.4%.
But while sales continued to grow after the last trade update in January, after a record period of Christmas trading, the group noticed that growth began to slow in recent months.
Although The Works usually experiences a drop in trade in the post-holiday period, he believes it has worsened due to British restrictions on consumer spending amid a growing cost-of-living crisis.
To a more limited extent, sales were affected by a cyber attack in April, which forced businesses to close some of their stores, suspend all stock deliveries and delay the delivery of online orders to customers.
As a result of the incident, the company accelerated plans to introduce new IT security measures and postponed the publication of results for the entire year until September.
Rising prices: The Works said it believes that the slowdown in sales has been exacerbated by the fact that the British have limited consumer spending amid the rising cost of living crisis
This week, the Bank of England found that inflation in the country rose to 9 percent last month, the highest level in 40 years, with oil, gas and electricity spending being the biggest driver of rising prices.
Meanwhile, figures released today by the Office for National Statistics show that retail sales in the UK fell 0.3% in the three months to April from the previous quarter, primarily due to declines in February and March.
Gavin Peck, CEO of The Works, acknowledged the troubling economic challenges facing consumers, telling investors: “As we enter the new fiscal year, the general terms of trade remain challenging.
“We will continue to focus on the factors under our control and ensure that when customers face increasing pressures on life, they can continue to rely on The Works as a destination for high value products.”
In addition to books and toys, the firm sells a wide range of goods, from stationery to games, handicrafts and tableware online and in hundreds of its stores.
These points were forced to remain closed during nationwide restrictions, leading to huge financial difficulties for the group, which warned early last year that it could violate its banking agreements.
However, thanks to high performance following the easing of Covid-19 rules, it started this month with a net cash of £ 16.3 million compared to £ 0.8 million 12 months ago and intends to pay investors dividends in 2.4 pension per share.
Following today’s renewal of trading for the full year, shares of The Works rose 9.45 per cent to 55 pensions on Friday, making it the second-highest in the Fledgling Index of the London Stock Exchange.