Following today’s release of WH Smith’s figures for the 6 months ending 28 February 2025; Tash Van Boxel, retail analyst at GlobalData, a leading data and analytics company, offers her view: “WH Smith has maintained momentum in H1 FY20024/25 from its most recent set of results over Christmas, with group revenue retaining growth of 3% (£951m), driven by its total travel arm, which experienced revenue growth of 6% to £712m. Despite the success of its travel division, group profit before tax fell 2% to £45m; this result was driven solely by the declining profitability of its high street fascia, which witnessed a £17m drop in trading profit during the period. After its high street division sale, set to be completed in Q4 FY2024/25, WH Smith will see profits rebound as it cuts itself loose from this poor-performing division. Its high street fascia has experienced quarterly declines since the COVID-19 pandemic.
“UK travel, WH Smith’s largest division, had a robust start to FY2024/25, reporting growth of 7% as it reached revenue of £384m. Hospitals and air stores were standout performers, with revenue up 9% and 8%, respectively. WH Smith added to its Smith’s Family Kitchen food-to-go range within air hubs, with pastries and bakery items now available, and increased the space allocated to health & beauty. This investment is part of WH Smith’s focus on expanding its range in these locations as it seeks to become a one-stop shop. Amid the positive response from UK consumers to the new store format, WH Smith intends to roll this out globally as it continues its international expansion plans. Moreover, WH Smith has opened its second Smith’s Family Kitchen café in a hospital, capitalising on the demand for leisure facilities in these locations. WH Smith should continue to extend into leisure to support its retail business in hospitals, with cafés and restaurants in this location being less prevalent.
“High street revenue fell 7% to £239m in the last six months, which WH Smith attributed to weak footfall in UK high streets. This poor result validates the wise decision to sell this fascia. Though the new owner of this division, Modella Capital, will not be taking on the WH Smith branding, it may still be able to turn things around within the floundering high street stores, using its Hobbycraft experience to breathe life back into the fascia. An influx of cash and enhanced proposition could bring the high street stores back to a semblance of their former glory.”
