WH Smith saw total revenues take an 85 per cent plunge during April
RETAILER WH Smith has warned over a “significant hit” since March as the coronavirus lockdown forced it to close travel outlets in railway stations and airports and many of its high street stores.
The group said total revenues plunged 85 per cent in April, with sales crashing 91 per cent across its travel arm – which makes up more than half of its annual turnover – and 74 per cent in its high street chain.
WH Smith said it had temporarily closed the vast majority of its 1,194-strong stores in the travel business, though it kept around 130 open in UK hospitals to help serve front-line NHS staff and has extended its grocery ranges in these outlets amid the crisis.
The travel arm has been a major engine for growth of the business in recent years, helping offset tough UK high street conditions.
As well as a presence across Britain’s travel network, WH Smith also operates in over 100 international airports and 31 countries.
Carl Cowling, group chief executive of WH Smith, said yesterday: “Since March, we have seen a significant impact on our business as a result of Covid-19, with the majority of our stores closed around the world.”
He added: “We are a resilient and versatile business and with the operational actions we have taken including managing costs and the new financing arrangements, we are in a strong position to navigate this time of uncertainty and are well positioned to benefit in due course from the normalisation and growth of our key markets.”
WH Smith kept 203 of its high street stores with post offices open amid the lockdown, but temporarily shut the bulk of the 575-strong chain.
While store sales were decimated, WH Smith noted a jump in online sales, with book sales surging 400 per cent as Britons looked for ways to pass the time at home.
The company said it was working on plans for a phased reopening of stores over its second half.
We are in a strong position to navigate this time of uncertainty
Carl Cowling, group chief executive of WH Smith