W H Smith sales up 41% on 2021 in strong start to the financial year

W H Smith has reported a strong start to the financial year, with total group revenue for the 20-week period up to 14th January 2023 up 41% compared to 2021 and up 20% compared to 2019. 

In a trading update, the retailer said its High Street business was “in line with expectations”, having increased by 2% against 2022 and 14% compared to 2019. Travel saw a significant increase, up 77% on the year prior and 48% on 2019. This is despite passenger numbers remaining well below 2019 levels.

In the UK, the firm is on track to open 15 stores this year across all channels. Total revenue for UK Travel was up 70% compared to the previous year for the 20-week period and up 18% versus 2019. W H Smith said it increased average transaction values and broadened its categories during the period by offering more health, beauty and wellbeing products. Revenue for the branches in UK airports specifically was up 132% on 2022 and 35% on 2019. 

For Travel, Rest of the World (ROW), total revenue was up 198% compared to the prior year for the 20-week period and up 30% versus 2019. W H Smith noted particular improvements in Australia and Asia, with Europe the best-performing region in the period. 

The firm said there were very good opportunities to win new business under the W H Smith brand and its tech accessories brand, InMotion, outside the UK and the US. Since the last trading update in November 2022, it has opened 12 new stores, including at Brussels and Kuala Lumpur airports plus the Gold Coast and Melbourne, Australia. 

Carl Cowling, group chief executive, said: “Our strategy to transform our customer offer continues at pace through broadening our categories and expanding our ranges, to include health and beauty and tech accessories and is underpinned by a forensic approach to retail.

“We continue to make good progress with our store opening programme and, in the year to date, we have opened over 40 new stores. We have also won significant tenders at Reagan National airport in Washington and Palm Springs airport in the US, as well as a further three InMotion stores in Italy at Rome Fiumicino airport. This takes the total number of stores we have won and yet to open to over 130.

“I would like to take this opportunity to thank our team across the globe and, in particular, our store colleagues who have worked exceptionally hard serving our customers throughout this busy trading period. 

“The group is in its strongest ever position as a global travel retailer. This strength, combined with the ongoing improvement in passenger numbers across the globe, means that we are confident of another year of significant growth in 2023.”