It seems being voted Britain’s worst retailer hasn’t harmed WH Smith’s (SMWH) share price. The stock found further momentum following news that travel sales rose by 3 per cent on an underlying basis, while high street sales were pretty much flat during the third quarter. This is typically the quietest trading period for the group, so it’s impressive to see that gross margins were also up across the board.
The consistently strong performance from the travel business is, so company bosses say, down to continued investment both in UK travel outlets and international units. The group is still on track to open between 15 and 20 new travel sites in the UK this year and recently opened a standalone bookshop at London Bridge Station. This summer, eight new units are slated to open at Madrid Airport, bringing the total number of international outlets to 282.
As for the high street, the retailer is trialling new store concepts to minimise costs and protect margins. Chief executive Stephen Clarke admits there’s “some uncertainty in the broader economic environment” but insists that WH Smith is confident about the outcome for the full year.
