WH Smith UK high street sales fall as stores put on the market
WH Smith UK high street sales fall as stores put on the market
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Revenues rise at travel arm, where retailer has shops at transport hubs and hospitals across 32 countries. WH Smith has reported falling sales in its UK high street stores, while revenues rose at its more successful travel arm, as the retail group attempts to offload its ailing town centres division.
The retailer’s up-for-sale high street division – where it sells newspapers, books, stationery, cards and gifts – reported a 6% fall in sales in the 21 weeks to 25 January, compared with a year earlier. This contrasted with a 7% increase in sales at its travel arm, where it has stores in railway stations, airports and hospitals across 32 countries.
The owner’s decision to put its 500 UK high street stores up for sale has created uncertainty for 5,000 staff, and could lead to the 233-year-old chain’s name disappearing from British town centres but potentially live on at transport hubs. Analysts said the sale would allow the company to focus on its growing travel division, which has almost 1,300 shops, and which accounted for three-quarters of the group’s revenue in the year to the end of August.
The retailer said it was benefiting from increased numbers of passengers at airports, while it was growing its profits in these stores by selling a wider range of products, including health and beauty items and food. It also reported rising revenue at its North American business, where the company said there are “substantial” growth opportunities, while it will open several stores at Orlando and Portland airports.
