W H Smith reports soaring Travel trade while High Street dips

W H Smith has reported a 8% rise in its total Travel revenue in its latest trading update as it pivots to “a one-stop shop” though its High Street arm dipped 4%.

The update for the 13 weeks to 1st June 2024 showed that “trading momentum continues across our key markets” with total Travel revenue up 8% compared to 2023 (or 9% on a total constant currency basis). The group said it is on track to deliver the full year in line with expectations with total revenue up 5% on 2023. 

UK Travel stores were up 9% compared to 2023, with North America up 3% and Rest of the World up 15%. High Street was down 4%.

The company is positive about its trading performance. “Our UK division continues to perform strongly.” This was attributed to “annualising on the strong recovery in passenger numbers in 2023”.

W H Smith added: “The transformation of the business to a one-stop-shop for travel essentials is delivering strong results, increasing average transaction values and returns. As part of our category development initiatives to expand the breadth and quality of our food-to-go ranges, we recently launched a new food-to-go brand, Smiths Family Kitchen, in more than 300 Travel stores. Customer feedback has been positive.”

While the High Street division’s total revenue was down 4% the company said its “store network performed well with LFL [like-for-like] revenue flat versus the comparative period last year”. It has also opened five new Toys “R” Us shop-in-shops within its stores, reported “good early feedback” with plans to open a further 25 shop-in-shops in the balance of the financial year.

Following its strong first half performance which was reported in April – showing total revenue up 8% year on year – W H Smith said “our positive expectations for the full financial year are unchanged”.

The retailer added: “Looking ahead, the group is well positioned as we enter our peak summer trading period. Good trading momentum continues across all three Travel divisions and we are in a strong position to capitalise on substantial growth opportunities across our markets.”