WH Smith relying on stationery sales despite slump in earnings

Retailer WH Smith has said it continues to put faith in plans to boost stationery sales to help offset under-pressure high-street trading after half-year profits fell.

The chain posted a 1% drop in half-year pre-tax profits, to £82million, after earnings slumped 6% at its high-street business to £50million.

This was only partially offset by a 5% rise in trading profits to £41million at its burgeoning travel arm, which is now the biggest part of the business.

WH Smith said like-forlike sales fell 4% across its 610-strong high-street chain in the six months to February 28 in the absence of any new publishing craze as the boom in demand for spoof humour titles came to an end.

But it said like-for-like stationery sales provided a bright spot, up 3%, and hailed recent trials devoting more space to this category as successful.

It has extended trials boosting stationery to another five stores – Winchester, Cheltenham, Thurrock, Salisbury and the Trafford Centre in Manchester – as part of a plan to ramp up investment in the category, which now accounts for half of all its high-street sales.

It also bought online pen specialist Cultpens. com during the first half and has struck a new stationery supply deal with the Post Office, building on an existing tie-up that has seen 168 post offices open in WH Smith stores.

WH Smith continues to cut costs to offset flagging high-street sales, with fullyear savings of £12million expected.