WHSmith is undergoing a major restructuring as the popular retailer focuses its efforts in the travel sector. The chain has shifted into being a “one-stop shop” over the past decade which has proved majorly successful for sales. As a result, it plans to expand further across travel hubs, including train stations, airports and hospitals.
This financial year, it is expected to open 110 new stores, which include more than 50 branches in North America. The UK travel business has significantly increased WHSmith’s trading profits, hiking up the figure by nearly a fifth. Chief executive Carl Cowling said the retailer was in its “strongest ever position as a global travel retailer”.
In the six months to the end of February, total group revenues were up a comfortable 8%, compared with the previous year. WHSmith said this can be attributed to the increase in customers travelling abroad, particularly in its stores located at London Heathrow and London Gatwick.
An increase in sales for the company’s travel leg continued through to March with a lift of 9% compared with the same period last year.
The company also recently opened a new flagship store at Birmingham airport which boosted sales this year.
WH Smith said: “The transformation of our UK travel business from a news, books and convenience retailer to a one-stop-shop for travel essentials is progressing very well.”
The business has launched into new categories such as food, health and beauty and travel accessories in a bid to offer jet setters everything they need before travelling.
Despite the expansion, the group will be closing 60 of its stores in order to hone its focus on the travel industry.
“We have had a good first half and our businesses are well positioned for the peak summer trading period,” Mr Cowling said.
Earlier this year, the popular retailer was sold to Modella Capital, taking over the 480 stores in retail parks, shopping centres and on High Streets including the 5,000 staff.
The private equity firm will be rebranding the High Street chain as TGJones with the WH Smith name still being used at travel stations and hospital outlets.
