WHSmith travel sales soar ahead of peak

WHSmith said it is “well positioned” to enter the peak summer trading period as a travel retailer following the sale of its high street business.

The company expects the £76m deal with Hobbycraft owner Modella Capital for its 480 high street stores to complete by the end of this month.

In its first update as a travel retailer, WHSmith reported sales had jumped 7% in the 13 weeks to 31 May and were up 5% on a like-for-like basis.

Like-for-like revenues in its UK division increased 6%, driven by a 7% surge in the retailer’s airport stores, 6% rise in Rail and 3% in its hospital locations.

During the period, WHSmith refitted seven stores in Edinburgh airport, including its one-stop-shop format, a new standalone bookshop, and its first Smith’s Family Kitchen coffee proposition in an airport setting.

The retailer’s North America division delivered a 7% sales boost on a constant currency basis and 2% increase on a like-for-like basis.

WHSmith attributed the growth to “strong spend per passenger growth [and] our forensic approach to space management”, including broadening its category ranges. It also opened 10 new airport stores in the region including, Calgary, Denver, Detroit and Washington.

The retailer said it was making “good progress” in growing its business in other regions, with revenue up 12% on last year and up 7% on a like-for-like basis as “passenger numbers continue to improve across these markets”.

Following the positive quarterly performance, WHSmith said its expectations for the full financial year are unchanged.

“Looking ahead, while we are mindful of the broader economic and geopolitical uncertainty, the group is well positioned as we enter our peak summer trading period,” it said.

“We are strengthening our focus on cost and cash discipline, and we are in a strong position to capitalise on substantial value creating opportunities that exist across our markets,” the retailer added.

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