WH Smith travel-retail sales grow 6%

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Increased sales, improved gross margin and tight cost control helped drive profits up by 16%

WH Smith has announced its preliminary results for the year ending August 31, with airport business up 5% through improved ranges, effective promotions and the successful rebalancing of sales from landside to airside. Total sales in travel-retail were up 6% as a result of new business development gains and expansion into the motorway service area market.

The news and gifts retailer reported that gross margin has increased through good category mix management and further buying improvements. This has resulted in increased sales in higher margin categories such as confectionery and books. Average transaction value has also improved due to promotional activity and mix changes.

The company has also renewed 20 contracts in airports and rail stations, and has opened 18 new units, 15 of which are in airports.