WH Smith says shift to ‘one-stop shop’ travel destination paying off

WH Smith has seen its shift to being a “one-stop shop” for travel essentials pay off, as it plots more store openings across train stations, airports and hospitals.

Chief executive Carl Cowling said the business was in its “strongest ever position as a global travel retailer”, with the UK travel business increasing its trading profit by nearly a fifth.

Total group revenues were 8% higher in the six months to the end of February, compared with the previous year.

The retailer said it was benefiting from an increase in consumers travelling, particularly in large stores at London Heathrow, London Gatwick and a new flagship store at Birmingham airport.

The travel format had resulted in an increase in the amount that the average customer spends in its shops, it said.

Sales for the division since March had also lifted 9% compared with the same period last year.

“The transformation of our UK travel business from a news, books and convenience retailer to a one-stop-shop for travel essentials is progressing very well,” WH Smith said.

This has included introducing new product categories such as tech accessories, food, and health and beauty, as well as trying to increase average spend such as through promotions and the layout of stores.

It is still expecting to open around 110 new stores this financial year, including more than 50 in North America.

But it will close about 60 stores as part of efforts to focus on better-quality space, the group said.

“We have had a good first half and our businesses are well positioned for the peak summer trading period,” Mr Cowling said.

Nevertheless, the group reported a headline pre-tax profit of £32 million, down from £43 million the previous year.

Stripping out the impact of one-off costs, its pre-tax profits edged up by 2% year on year.

The profit figures may have come as a disappointment to shareholders, with shares in WH Smith down more than 4% on Thursday morning.