WH Smith’s Chief Executive Stephen Clarke will step down at the end of October after six years in the role. He will be replaced by Carl Cowling, a retail veteran who is currently Managing Director of the group’s High Street business.
Clarke his led the group through a difficult period, restructuring its ailing High Street chain whilst successfully growing its travel division.
Henry Staunton, the group Chairman, commented: “He [Clarke] has built an excellent management team and has put in place a proven strategy which will continue to deliver for all our stakeholders.”
He added: “I am delighted that Carl will be Stephen’s successor. Carl has been instrumental in the development and execution of our successful strategy that has led to the company’s outstanding performance. Carl has the qualities and experience to lead the company and continue to deliver superior shareholder returns over the years to come.”
Cowling joined WH Smith in 2014 having previously held executive positions at Carphone Warehouse and Dixons. He said: “I am committed to continuing to deliver excellent shareholder returns and look forward to leading WH Smith to its next stage of growth.”
News of Clarke’s departure was announced alongside a trading update for the 11-week period to 18 May, which showed the group’s overall like-for-like sales were up 1%.
Like-for-like sales in WH Smith’s travel business increased by 3%, while total sales rose by 26%, thanks to its acquisition US airport retailer InMotion last year. WH Smith stated that the performance was also boosted by its ongoing focus on format development, customer service, space and category management and continued investment in its UK and international businesses. It said it is on track to open a further 20 units in the UK, including 10 in hospitals.
Meanwhile, sales in WH Smith’s High Street stores continued to fall as it maintained its focus on improving profits. Both total and like-for-like sales declined by 1% in the period. However, gross margins continued to improve thanks to cost savings. The retailer added that its stationery business performed well following an investment in developing ranges and allocating additional space in stores.
Clarke commented: “Whilst there is some uncertainty in the broader economic and political environment, we are well placed as we approach the key summer trading period in Travel. We continue to focus on profitable growth, cash generation and investing in the business to position us well for the future. We remain confident in the outcome for the full year.”
