Retailer WHSmith has announced it is shifting its focus away from traditional high street stores as it plans to open more than 120 new stores at airports and train stations.
The company said the increase in passenger numbers at airports and train stations helped boost its half-year revenue to £859m, up 41 percent from the same period last year.
Profit before tax rose to £45m in the six months to the end of February, compared to £18m in the previous half.
Regularly ranked as the UK’s worst retailer before the pandemic, WHSmith is benefiting from a rebound in travel following the easing of pandemic-related restrictions. The UK travel company’s revenue rose two-thirds to £314m year-over-year, making it the company’s largest division.
WHSmith expects its North American divisions to report annual profits in excess of £50m, up from £33m last year, making it the second-biggest division.
The travel company generates 70% of all sales and 85% of profits. There are plans to open more than 120 new tourist shops, 50 of them in the current half of the year. The new store portfolio includes significant investments in North America.
At the big street stores, still battling stiff competition, sales fell 1% year-on-year to £266m.
The company said its High Street stores are on track to save £13m a year as the company negotiated lower rents for many of its stores.
Richard Hunter, Head of Markets at Interactive Investor, said: “The growth of the travel industry, which is currently the driving force behind the group, continues at a rapid pace, with overseas expansion providing further opportunities.
“The Group is taking a one-stop-shop approach, expanding its more traditional book and newspaper offering to include health and beauty, technology, food and pharmaceuticals.
“They aim to offer time-strapped customers everything they need to travel under one roof with a fast and convenient shopping experience.”
Source: I News
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