OPTIMISM

A rise in the number of people passing through Britain’s airports and stations helped boost third-quarter sales at WH Smith’s travel arm, offsetting a slump at its high-street business.

The retailer cited uncertainty in the “broader economic environment”, but reported a 4 per cent rise in group sales, boosted by an 8 per cent leap in total sales in its travel outlets.

Like-for-like sales in travel were up 3 per cent in the 13 weeks to 2 June, while overall, like-for-like group sales rose by 1 per cent.

“This good performance reflects our continued investment in our UK and international businesses and growth in passenger numbers,” the company said, adding that a wider range of healthy food options also proved popular among customers.

It helped make up for a 1 per cent decline in both total and like-for-like sales across its high-street business in the third quarter, which the retailer stressed was its “quietest trading period”.

However, analysts pointed to the lack of competition in

0 The retailer plans to expand its travel outlets both nationally and internationally

MIKE VAN DULKEN many airports and train stations. The firm said it would continue to expand in the sector, where it had targeted between 15 and 20 new sites in the UK this year.

Internationally, it is set to open eight units in Madrid Airport, bringing the total number of overseas sites to 282. A further ten locations are due to open this year at the global division.

George Salmon, an equity analyst at Hargreaves Lansdown, said: “The attraction of the travel business is the customer is usually in such a rush that convenience takes priority over price, or in the case of airports, there aren’t many alternatives where passengers can pick up a sandwich, magazine or book.

“This gives the group that most valuable of qualities: pricing power.”

He added: “The ongoing headwind of lower footfall means the high-street business has seen sales drop again, but the pace of decline is notably slower than reported earlier in the year.”

“Management can afford confidence in the FY outcome… [The latest results are] not quite a thriller, but a page-turner nonetheless.”