WH Smith 'on track' to open 110 shops this financial year as travel arm's sales grow

“We continue to see improving passenger numbers across UK air, a strong performance in hospitals, and rail is performing well,” the company said. This growth was partly offset by its high street business, which saw sales decline by 4 per cent over the 20-week period. The company said it saw like-for-like for growth of 1 per cent across its UK shops despite this and stressed that this was in line with expectations.

Group chief executive Carl Cowling said: “The group is trading well and is in its strongest ever position as a global travel retailer. We are confident of another year of significant growth in 2024.”

Mr Cowling particularly highlighted a strong performance by the group’s North American business, where the company has pointed towards “substantial” growth potential through new stores.

“We continue to make excellent progress in North America, and I am particularly excited by the substantial growth opportunities that exist in this market,” he said.

“We are on track to open over 50 new stores in North America this financial year. In total, we are on track to open over 110 stores this financial year.”

The company said this will include 15 new stores across the UK, with ambitions to open a similar number each year for the near future.

Richard Hunter, Head of Markets at interactive investor, commented: “Strong trading momentum has largely been maintained in this period, largely driven by the travel business which is doing much of the heavy lifting.

He added: “Travel is where the growth opportunities lie and the potential in North America is substantial in the group’s view.

"The store opening programme continues apace, with more than 50 stores due to open in the region among a figure of 110 stores for the group as a whole. In addition, there is a strong pipeline of tenders in place, which suggests that the group has every intention of bolstering its presence in this market.”

Mr Hunter said that WH Smith benefits from “captive” customers in many of its key sites, such as railway stations, motorway services, hospitals and, in particular, airports, which sets it aside from much of the retail competition.

He added: “The return of near normality in air travel has been a particular boon to this segment of the group. In addition, research suggests that air passenger numbers will finally return to pre-pandemic levels during the course of this year. Indeed, revenues in these sites have shown strong growth compared to the corresponding period.

"In the meantime, and at each of its locations, the group is aiming for a one-stop shop approach by expanding its more traditional books and newspaper offering to include health and beauty, technology, food and pharmacy products.”