WH Smith continued to bounce back from the effects of the pandemic over the Christmas period, driven by the recovery in its stores located in airports and railway stations.
Total sales in the group’s Travel division jumped 70% year-on-year in the 20 weeks to 14 January, despite passenger numbers remaining “well below” 2019 levels. On a like-for-like sales basis, the increase was 48%.
In its High Street stores division, WH Smith’s s total sales were down 2% with flat like-for-likes. This was in line with expectations, with the retailer saying it maintained good stock availability through the peak trading period and exited Christmas with a clean stock position.
For the company as a whole, sales rose by 41% year-on-year in the period and by 20% on pre-pandemic levels in 2019.
Carl Cowling, WH Smith’s Chief Executive, commented: “The Group has made a strong start to the financial year, with our global travel retail business growing strongly across all regions.
“Our strategy to transform our customer offer continues at pace through broadening our categories and expanding our ranges, to include health and beauty and tech accessories, and is underpinned by a forensic approach to retail.
“The group is in its strongest-ever position as a global travel retailer. This strength, combined with the ongoing improvement in passenger numbers across the globe, means that we are confident of another year of significant growth in 2023.”
NAM Implications:
- Time for a fundamental re-think of the WHS business model.
- i.e. doing something about high street drag on group profitability?
- At least to consider a split to allow optimisation of the two distinct models?
