WH Smith Shakes Off Rail Strikes as Sales Soar with Holidaymakers
- Turnover at the retailer increased by 28% for the 12 months ending August
- Its travel arm continued to benefit from the loosening of Covid-related curbs
- The firm recently announced it would not be opening any more UK high street shops
WH Smith has defied the impact of rail strikes with strong sales driven by holidaymakers and its expansion in the US.
The retailer saw a 28% increase in turnover during the 12 months leading up to August.
First-half revenues grew at double the rate of the second half, attributed to the impact of the Omicron variant the previous year.
WH Smith’s travel business continued to benefit from the lifting of pandemic-related restrictions, allowing British travelers to go abroad.
Moving again: WH Smith’s travel business continued to benefit from the loosening of pandemic-related curbs that have enabled people to go abroad again
WH Smith attributed its success to its focused in-store strategy, resulting in higher average transactions and a wider range of products.
Sales at the company’s UK travel hubs increased by over a third, with revenue growth in airport and hospital-based outlets.
The rail channel also maintained its demand, despite strikes affecting footfall.
In North America, travel sales grew by 31%, and the company expanded its market share and opened 43 new shops.
While traditional high street sales saw a slight decline, WH Smith intends to focus on overseas expansion and travel hubs rather than opening more UK high street shops.
Analysts predict WH Smith’s retailing approach will lead to successful growth in the global travel essential retail segment.
For the last financial year, the travel business is expected to contribute over 70% of revenue and approximately 85% of profit from trading operations.
WH Smith shares were 5.6% lower at £14.01 on Wednesday morning.
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