WHSmith in ‘strongest ever position’ as international travel opens up

In a trading update for the 20 weeks to January 14, WHSmith group revenue jumped 41% compared with the previous year and was 20% up on pre-pandemic, 2019 levels. 

Across its travel arm, WHSmith reported a 77% increase in sales year on year and a 48% increase on pre-pandemic levels – this despite passenger levels well below 2019 levels. 

Travel UK revenues were up 70% compared to the prior year for the 20-week period and up 18% versus 2019. Air was up 132%, rail up 24% and hospitals up 32% year on year, as WHSmith focused on increasing average transaction values and broadening its categories. 

Overall revenues for its North American travel arm were up 31% compared with the previous year and on a proforma basis were up 20% versus 2019 with improvements in air passenger numbers over the critical Thanksgiving period. 

Total revenues in the retailer’s travel business across the rest of the world soared 198%, driven by “notable improvements in Australia and Asia, with Europe the best-performing region in the period”.

The retailer’s UK high street business like-for-like revenues were flat in line with expectations, although WHSmith said it had “maintained good stock availability and we exited Christmas with a clean stock position”.

In terms of outlook, the retailer said it had had a “strong start to the year” and said it was confident of progress in 2023 if international travel numbers continued to pick up. 

Chief executive Carl Cowling said: “The group has made a strong start to the financial year, with our global travel retail business growing strongly across all regions.

“Our strategy to transform our customer offer continues at pace through broadening our categories and expanding our ranges, to include health and beauty and tech accessories, and is underpinned by a forensic approach to retail.

“We continue to make good progress with our store-opening programme and, in the year to date, we have opened more than 40 new stores. We have also won significant tenders at Reagan National Airport in Washington DC and Palm Springs International Airport in California in the US, as well as a further three InMotion stores in Italy at Rome Fiumicino Airport. This takes the total number of stores we have won and are yet to open to over 130.

“I would like to take this opportunity to thank our team across the globe and, in particular, our store colleagues who have worked exceptionally hard serving our customers throughout this busy trading period.

“The group is in its strongest-ever position as a global travel retailer. This strength, combined with the ongoing improvement in passenger numbers across the globe, means that we are confident of another year of significant growth in 2023.”

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