Sushi, travel and high-end headphones help WH Smith profits double
L ess than three years ago WH Smith, the chain once known for its chocolate promotions, magazines and stationery, had lost almost two-thirds of its stock market value as the pandemic damaged its UK high street business.
But now the retailer is reaping dividends from a transformation that means its typical customer is more likely to be picking up high-end headphones, a smartphone charger or some sushi.
The group, which back in August 2020 was having to cut 1,500 jobs amid criticism of over its lack of investment in stores, has now more than doubled profits in a year thanks to a bounceback in air and rail travel, expansion abroad and an embrace of electronics and premium food ranges.
Sales in its outlets in airports, train stations and hospitals jumped 75% to almost £600m in the six months to 28 February. Sales outside its established markets in the UK and the US tripling to £102m during the same period. That helped the group make pretax profits of £45m, up from £18m a year before.
Airport stores had the biggest surge in sales despite traveller numbers being down 15% on pre-pandemic levels. Sales in train stations outside of strike days stayed flat, even though there were a fifth fewer passengers.
Sales at the group’s high street division dropped 1% to £266m, however. The company said a rise in physical store sales had been offset by a big decline at its online outlets including Funky Pigeon, which had benefited during the pandemic lockdowns.
Carl Cowling, the group’s chief executive, said it was persuading more shoppers to enter its doors and each visitor to pick up an extra item by widening its product ranges.
“Three years ago we just sold sandwiches, now we have Yo Sushi and premium wraps from Crush. More people are coming
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