WH Smith maintains FY guidance amid rising travel sales
The group’s transformation to a ‘one-stop-shop’ for travel essentials is delivering particularly strong results, increasing average transaction values and returns
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WH Smith has reported being in line with its expectations for the full year and claimed it is “well positioned” for peak summer trading, as total summer travel revenues in the 13 weeks to 1 June rose 9% on a constant currency basis.
This comes as the retailer saw passenger numbers recover greatly, with total revenues rising 8% in the air segment, 14% in hospitals and 8% in rail during the period.
According to the group, its transformation to a “one-stop-shop” for travel essentials is delivering particularly strong results, increasing average transaction values and returns.
WH Smith recently launched a new food-to-go brand, Smiths Family Kitchen, in more than 300 travel stores as part of its category development initiative.
Meanwhile, the retailer’s high street division saw total revenues, including online, dip 4% in the period to 1 June. While WH Smith noted that its store network performed well, that meant that like-for-like revenues stayed flat compared to the comparative period last year.
So far, the group has also successfully opened five Toys R U shop-in-shops within its stores, and it is on track to open an additional 25 shop-in-shops in the balance of the financial year.
In the North America segment, WH Smith’s total revenues were up 5% on the last year on a constant currency basis, despite like-for-like sales remaining flat.
As a result, the retailer stated it is applying “a forensic approach” to retailing across the region with a range of initiatives, including rebalancing space from lower to higher performing categories; increasing the range of snacking and confectionery; and increasing the number of chillers in store.
Other parts of WH Smith’s global division saw revenues for the period to 1 June rise 16% on last year on a constant currency basis, as passenger numbers continued to improve across these markets.
Since its announcement on 25 April, WH Smith has stated that its positive expectations for the full year have remained unchanged.
