Travel sales take top spot for WH Smith

SWITCH: High street stores now playing second fiddle

Sales in WH Smith’s travel concessions have overtaken earnings from its high street stores for the first time.

The retailer said its burgeoning travel arm is now the largest part of the group,with a 10% surge in annual earnings to £96 million and accounting for nearly two-thirds of trading profits.

This helped offset pressure on the high street chain, which saw trading profits remain flat at £62m and like-forlike sales fall 4% in the year to August 31.

Chief executive Stephen Clarke hailed a “good performance” across the group as overall pre-tax profits rose to £140m from £131m.

He said: “The travel business

“Travel is now the largest part of the group in both revenue and profit. STEPHEN CLARKE

continues to perform well with strong revenue growth, up 9% in the year.

“For the first time revenue in travel has overtaken high street, and travel is now the largest part of the group in both revenue and profit.”

Despite the uncertain economic environment, Mr Clarke said the company – which announced a 10% rise in its final shareholder dividend payout to 48.2p – was well placed for the future.

WH Smith has 582 travel stores across the UK.

It also has 233 international shops. The overseas stores contributed £9m of the £96m reported for the travel business.

The group’s high street arm has a total of 611 high street stores, three fewer than the previous year.

Smith’s said the high street arm continued to benefit from tight cost controls and added that spoof humour and colour therapy books were driving sale.

Picture: PA. In good order: WH Smith said it is well placed for the future.