WH Smith thanks travel business for growth

WH Smith Plc (LSE:SMWH) continues to see its ‘travel’ business – its shops in airports and train stations – as the main driver, whilst its more traditional high street newsagent stores see weaker trading.

Sales in the travel-related outlets saw 8% growth in the retailer's 13-week reporting period ending 1 June.

WH Smith sees itself as a “one-stop shop for travel essentials”, and highlighted that it is also expanding its offerings via its ‘Smiths Family Kitchen’ brand which is now present in more than 300 sites.

“The transformation of the business to a one-stop-shop for travel essentials is delivering strong results, increasing average transaction values and returns,” the company said in a statement.

High Street sales were down 4%, however, the company noted, and it added that like-for-like sales in the unit were flat year-over-year.

The company, meanwhile, noted that it ‘opened’ five new Toys’R’Us branded “shops-in-shops” during the period. This diversification has seen “good” early feedback, it added, whilst telling investors it intends to add another 25 such ‘openings’ over the remainder of this year.

“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 capitalise on substantial growth opportunities across our markets,” the retailer added.

In London, WH Smith shares gained 1.4% on Wednesday.