WH Smith shares rise - but stark gap between high street and travel stores shows weakened hand for sale of shops
WH Smith shares rise - but stark gap between high street and travel stores shows weakened hand for sale of shops
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The group said total high street sales dropped 6 per cent while travel shops saw 6 per cent growth. Retailer WH Smith has revealed sales at its high street estate remain under pressure just days after the group confirmed talks to sell the 500-strong chain.
The firm said total high street sales dropped 6 per cent in the 21 weeks to January 25, covering the key Christmas season, down 3 per cent on a like-for-like basis. It comes after the historic UK business confirmed over the weekend that it has held talks about potentially selling its high street stores to focus on its larger travel operation.
While that is only one portion of the overall operations of the group, analysts have warned the combination of falling high street sales and the wider economic outlook make it a tough moment to try and land a good deal in selling its shops. Shares rose more than six per cent on the London Stock Exchange in early morning trading, as while high street sales were poor, the other side of the business continues to look impressive.
The group said the fall in high street sales was in line with its expectations while it added that its travel shops based in airports, railway stations and hospitals delivered an “excellent performance” with like-for-like sales up 6 per cent in the five-month period. This helped revenues overall rise 3 per cent on a same-store basis.
