WHSmith profits boosted by rising sales at airport and stations
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Version 0 of 1. WHSmith reported a 7 per cent rise in pre-tax profit for 2017 helped by a strong performance at its outlets in airports, train stations and motorway services. The 225-year-old retailer has responded to falling sales on high streets across the country by focusing on growing its presence at transport hubs where footfall remains strong. The strategy takes WHSmith back to its traditional business model as a books and newspaper seller at railway stations in the nineteenth century. The latest results show that approach is paying dividends. Its travel business generated more revenue than its traditional high street shops for the first time ever and continued to be more profitable in the year to the end of August. WHSmith’s travel hub outlets increased trading profit 10.3 per cent to £96m, while profit at high street stores was flat at £62m. Overall pre-tax earnings were £140m. In 2015, The Independent revealed that WHSmith and other airport retailers including Boots and Dixons were pocketing VAT on purchases made by travellers flying beyond the EU, even though no tax was due. Boots followed suit in March this year. In July last year, following that investigation, WH Smith agreed to begin refunding the VAT to eligible customers making purchases of £6 or more. The company opened 15 new units in the UK during the year, and now has a total of 582 units in the UK. It plans to continue expanding overseas by opening 41 new stores this year, including one at Singapore’s Changi Airport. Stephen Clarke, WH Smith chief executive said: “During our 225th anniversary year, we were delighted to open our 225th international store and now have 233 stores open. We have won 273 stores across 25 countries, including new stores in Singapore and Rome. “While the economic environment remains uncertain, we are well positioned for the current year and beyond." |