Following today’s release of WH Smith’s figures for the 52 weeks ending 31st August 2023; Tash Van Boxel, retail analyst at GlobalData, a leading data and analytics company, offers her view: “WH Smith has continued on its upward trajectory in FY2022/23, as stronger passenger numbers and improving consumer confidence supported group revenue growing 28% on FY2021/22, with robust like-for-like (l-f-l) growth of 18%. This was largely driven by WH Smith’s impressive H1 performance, with group revenue up 41%, compared to 17% in H2 FY2022/23. Indeed, its travel division continues to excel worldwide and in the UK, as travel numbers return to pre-pandemic levels.
“In the UK, WH Smith’s travel division remains impressive, with revenue growth of 36% for FY2022/23. As air passenger numbers recovered throughout the year, footfall across key travel locations grew as consumers took full advantage of the holiday season. While l-f-l performance was strong, up 30% in FY2022/23, WH Smith’s expansion of 20 new stores in railway destinations, airports, and hospitals would have driven revenue growth. With plans to open a further 15 by August 2024, we expect its travel arm to continue to go from strength to strength. WH Smith’s success in its travel division has not only been driven by improving passenger numbers but has further been amplified by the expansion of its proposition. Enhancing its health & beauty offer, especially in airport locations, as well as its food range, has been important in supporting sales in these fascias. While little has been said about its Holland & Barret concessions, expanding these to more locations will enable WH Smith to further grow its health & beauty appeal, enhancing its existing health & beauty range.
“The performance of its high street division continues to lag behind that of its travel arm, with revenue falling 1% on FY2021/22, pulled down by a weaker trading period in H1. Though WH Smith’s high street strategy remains unchanged, with the focus on curbing profit loss, the books, news and stationery retailer must consider bringing innovation to its high street stores. With retailers such as The Works improving its offer, stocking books, arts & crafts, and stationery, and reaping the benefits, WH Smith’s stores have been fading in comparison, given the higher price points of much of its offer. Reacting faster to trends in the books and stationery markets, such as by ensuring good stock availability of trending books on social media (made popular by the likes of Book-Tok) will enable WH Smith to maintain appeal and entice consumers back to its stores.”
