WH Smith has generated more revenue from its travel business than its high street shops for the first time in the company’s history.
In the year ended 31 August, the retailer posted total annual revenues of £1.2bn, up 2%. Its pre-tax profits rose faster, up by 7% to £140m.
The travel business ended the year with a revenue of £624m, compared with the high street which logged sales of £610m.
While travel numbers increased, declining footfall and the growth of online shopping hit performance at its high street branches, where revenue fell by 5%.
In comparison, travel revenue grew by 9%. The 225-year-old retailer, which originated as a bookseller at Victorian railway stations, has invested more heavily in the travel arm of the business with stores at airports, railway stations and motorway services.
The retailer is re-configuring some of its store formats, including opening larger stores at airports. It will also open in smaller railway stations and include a coffee shop.
GlobalData retail analyst Sarah Johns said: “[WH Smith chief executive] Stephen Clarke has made some efforts to rejuvenate the high street division. It is now under new leadership from former travel managing director Carl Cowling, and stores are being refurbished. Also, 250 store leases are due for renewal over the next three years giving WH Smith the chance to negotiate lower rents or close underperforming stores.”
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