The decline in WH Smith’s high streets is being offset by growth in retail travel

WH Smith’s expansion into travel hubs across the country is more than offsetting the continued decline in high street activity.

The retailer told investors on Wednesday that UK high street and online revenue fell 4 percent in the thirteen weeks to June 1, but like-for-like sales were flat.

In the group’s travel division, which has stores at transport hubs such as train stations and airports, revenues rose 9 percent in the same period.

Total sales rose by 8 percent in the airline sector, 14 percent in hospitals and 8 percent in the rail sector in the period, according to WH Smith.

“It will be interesting to see whether the company takes more decisive action on its high street business as the sector continues to struggle,” Russell Pointon, consumer director at Edison Group, said on Wednesday.

WH Smith shares rose 2.62 percent or 30.00p to 1,173.00p on Wednesday, after falling more than 26 percent in the past year.

The group told shareholders it remained on track to meet full-year expectations despite a slowdown in sales growth in the third quarter, as strong growth in the travel division was tempered by falling sales on the high street.

The group’s total sales increased by 5 percent towards the end of the period, from 8 percent to less.

Sales in the travel division rose 8 percent and fell from 13 percent as growth rates in the Travel UK, North America and Rest of World segments slowed.

In Britain, WH Smith said growth had slowed “as we analyze the strong recovery in passenger numbers in 2023 on a year-on-year basis.”

The retailer added: ‘Looking ahead, the group is well positioned as we enter our peak summer trading period.

“Good trading momentum continues across all three travel divisions and we are in a strong position to capitalize on substantial growth opportunities in our markets.”

WH Smith has strengthened its presence in transport hubs and hospitals, both of which have high footfall.

It said the company’s ongoing “transformation” into “a one-stop shop for travel essentials” is “delivering strong results and increasing average transaction values ​​and returns.”

Russ Mould, investment director at AJ Bell, said: ‘WH Smith is exploiting a captive audience, namely people who want something but can’t look around because there are either few alternatives or don’t have time when they’re about to catch a plane. catch or train.’

WH Smith has introduced Toys R Us concessions departments in some of its high streets.

In May, WH Smith unveiled the first 17 locations for the next wave of Toys R Us stores set to launch across its stores in the summer, as the children’s chain’s revival gathers pace.

The high street group, which has already opened nine Toys R Us shop-in-shops as part of its retail partnership with the brand, will open a further 30 concessions by the end of August.

Three of the concessions – in Hereford, Herefordshire, Leamington Spa in Warwickshire and Fosse Park in Leicester – opened on May 25.

The retailer’s move to open its first concessions last year marked a return for the children’s chain after its collapse more than six years ago.

Victoria Scholar, head of investments at Interactive Investor, said: ‘Investors are enjoying a 3 per cent rise in WH Smith shares today.

‘While we are taking a step back, it remains a difficult time for investors as shares have underperformed the UK market this year.

‘Longer term performance has been just as painful – WH Smith is struggling to attract investors, with shares still more than 50 per cent below their pre-pandemic highs.’