Travel drives sales for WH Smith

UK newsagent WH Smith’s thriving travel arm is outperforming its waning high street stores.

In a positive set of results, WH Smith has demonstrated continuing improvement in its gross margin thanks in part to ongoing cost cutting measures in the High Street division.

Total group sales were up by 4 per cent.

WH Smith’s travel stores continue to display standout performance and total sales recorded double-digit growth of 12 per cent, with sales up by 5 per cent on a like-for-like basis.

The company is expanding this format in the UK and internationally, where it has created a successful retail model that can be applied across the lucrative cross section of travel hubs such as train stations and airports, as well as its hospital stores. Its ability to better work its space and ranges has proved fruitful – with its introduction of higher margin souvenirs, travel accessories, and food-to-go at these stores being prime examples.

Meanwhile, WH Smith reported pleasing trading at its high street arm over the Christmas trading period – here like-for-like sales recorded a rare uplift of 2 per cent over the five week period to January 2, ensuring its like-for-like performance over the wider 20 weeks avoided decline.

The company says its festive trading success was due to well received promotions on stationery and seasonal goods, and the ongoing popularity of ‘colour therapy’ books.

As a result of this festive success, WH Smith now expects full year profit growth to exceed expectations.

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