Travel has become a vital part of WHSmith’s growth, as recognised by the chief operating officer’s promotion to managing director. Tiffany Holland profiles him.

WHSmith

Soon-to-be managing director of WHSmith’s travel division, Simon Smith has an exciting task ahead as the bookseller and stationer targets growth from its network in locations such as airports and train stations.

He should be well placed to take full charge of the division, having been at the heart of its expansion into new markets such as hospitals and workplaces over the past seven years.

Smith, who is at present chief operating officer of the company’s travel arm, is the type of person who can take his team with him when he becomes managing director in December, say those who know him.

“He’s a pretty engaging individual,” says Justin Linger, director at headhunter Barracuda Search, who has known Smith since the latter’s days in grocery with Safeway. “He has a good management style and is highly commercial. He is someone that leads by example and is a true professional.

“He has broad experience of business and he communicates it through his management methods.

“Smith is not from the old school of management where you might see someone sitting in an office away from their team. He ensures he is very much a part of it.”

WHSmith’s travel arm delivered a record profit last year, the retailer revealed in last week’s prelims. It performed well despite softer passenger numbers in the tough economic climate. The division’s operating profit increased by 8% to £57m, although like-for-like sales were down 3% because of the drop in people travelling.

The longer-term future of the retailer’s travel arm has excited analysts for a long time, and their interest grew when group chief executive Kate Swann said last week that she saw great future potential, particularly overseas.

Swann told analysts of her desire to increase international travel stores “well into the hundreds” over the next five years. Broker Oriel forecasts more than 20% growth in group profit over five years, powered by the travel arm.

“I think he will really drive the business forward,” says Linger. “He is highly trusted by Kate Swann. I think what he has ahead of him will be his biggest career opportunity to date. He has been fundamentally linked with the growth of the travel division.”

Last year, Retail Week identified Smith as one of retail’s leaders of the future. He is seen as a potential successor to Swann, or alternatively taking the top job at another retailer.

Oriel analyst Jonathan Pritchard is impressed by the rate at which WHSmith has grown its travel business, especially internationally, which will total 60 stores by the end of the next financial year, including shops in Copenhagen and Shannon, Ireland.

“There is no doubt that Smith has a lot of work on his hands,” says Pritchard. “He will have a property team around him to find new locations for the additional international stores, but he will have the final say.

“The WHSmith pitch document to landlords at travel terminals is becoming more compelling, because everywhere WHSmith has set up shop it has managed to increase turnover per customer and per square foot, against the previous tenant. That is helping business.

“It’s a pretty aggressive growth area for the retailer and it looks as though they will grow the amount of stores to the high hundreds.

“They are doing well despite the softened passenger numbers and WHSmith will be very well positioned to do even better when the travel industry picks up.”

Smith began his career at grocer Safeway where he was part of the trading team, working with retailers such as John Durkan – now the merchandise director at Australian retailer Coles.

Smith has been a high-flyer ever since, and it looks likely he will be doing a lot of overseas travel in his new role.

Simon Smith - Career history

2004 to present Chief operating officer, WHSmith

2000 to 2004 Commercial manager, Safeway

1990 to 1992 Leeds Metropolitan University