WH Smith rethinks airport strategy as sales plunge 24%

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WH Smith is rethinking its US travel-retail strategy after sales fell 24% in the last six weeks, and 50% in the weeks immediately after the September 11 attacks on the US.

The group said it would open fewer, but larger, airport stores in future. Its stores will also only open during peak hours in the mornings and evenings, to reduce costs.

WH Smith operates 180 airport stores and 400 hotel shops in the US. Its results in the six weeks to October 13 were 24% down on the same period last year, although the company insists these have begun to improve.

WH Smith said results had been down even before the attacks as the US economy slowed and fewer people travelled.

The news came as the group reported an 8% drop in profits, to £130m ($191m), for the year to August.