WH Smith to open more than 120 new travel stores as sales surge

WH Smith has revealed plans to open more than 120 shops after resurgent travel demand helped sales rocket over the past six months.
By Greg Wright
Published 20th Apr 2023, 08:52 BST
Updated 20th Apr 2023, 08:53 BST

The retailer also saw profits more than double as it continues to shift its focus further towards airport and railway station shops instead of its traditional high street spots.

Boss Carl Cowling highlighted “strong” current trading and told shareholders the performance was “ahead of expectations for the full year”. WH Smith said group revenues increased by 41 per cent to £859m for the six months to February 28, compared with the same period last year. As a result, it also said pre-tax profits rose to £45m from £18m in the previous half-year.

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WH Smith benefited from a strong rebound in passenger numbers after the easing of pandemic travel restrictions. The group’s UK travel business saw sales jump by two-thirds to £314m against the same period a year ago, making it the firm’s largest division.

File photo of a general view of a branch of WH Smith in London, as as the retailer has revealed plans to open more than 120 new shops after resurgent travel demand helped sales rocket over the past six months.File photo of a general view of a branch of WH Smith in London, as as the retailer has revealed plans to open more than 120 new shops after resurgent travel demand helped sales rocket over the past six months.
File photo of a general view of a branch of WH Smith in London, as as the retailer has revealed plans to open more than 120 new shops after resurgent travel demand helped sales rocket over the past six months.

Meanwhile, it saw high street sales edge 1 per cent lower to £266m.

Bosses of the group, which has been a mainstay on UK high streets, said its growing travel arm is set to represent over 70 per cent of all revenues by the end of the year, as well as 85 per cent of its profits. The focus on travel is set to increase further, with the company confirming more than 120 new travel shops are earmarked to open, with 50 set to take open in the current half-year. The pipeline of new shops will include significant investment to grow WH Smith’s North American business.

Mr Cowling, chief executive of the group, said: “We have seen a strong performance in the first half of the year, further strengthening our confidence in the prospects of our global travel business. Looking ahead, we are very well positioned to capitalise on the substantial growth drivers across our markets and we expect to make further good progress in the years ahead. Current trading is strong and we are ahead of expectations for the full year.”

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The update comes a month after the retailer said it was hit by a cyber attack, with hackers accessing some workers’ data. WH Smith said names, addresses, national insurance numbers and dates of birth of current and former UK staff may have been among the data breached but its websites and customer accounts were unaffected.

Richard Hunter, Head of Markets at interactive investor, commented: “Growth in the travel business, which is now the driving force behind the group, continues apace at WH Smith where overseas expansion is providing further scope. At each of its locations, the group is aiming for a one-stop shop approach by expanding its more traditional books and newspaper offering to include health and beauty, technology, food and pharmacy products. able to provide time-pressed customers with all their travel essentials under one roof with a fast and convenient shopping experience.

"In terms of outlook, the group has stated that current trading continues to build and is ahead of expectations for the full year. Such ambitions are before the traditionally busier summer season kicks in, which should see some of the numbers skewed towards a stronger second half.”