Retail group WHSmith, having shifted its focus to the travel market by selling off its high street stores earlier this year, is eyeing global expansion opportunities. The Swindon-based company reported a 12% revenue growth in its international stores outside the UK and North America for the 13-week period ending on May 31. Meanwhile, its revenue in the UK and North America saw increases of 5% and 7%, respectively.
In a trading update, WHSmith expressed optimism about its Rest of the World business, emphasizing the potential for growth. The company’s total revenue showed a 12% increase on a constant currency basis, with a 7% rise on a like-for-like basis during the specified period, driven by improving passenger numbers in those markets.
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Established in 1792, WHSmith completed the sale of its 480 high street stores and support center in Swindon earlier this year to Modella Capital, the owner of Hobbycraft retail chain, affecting 5,000 employees. Looking ahead, the company remains cautiously optimistic amidst economic uncertainties, leveraging its strong position for summer trading.
The company’s strategic investments include enhancing its UK store portfolio, with recent renovations at Edinburgh Airport featuring new formats like a standalone bookshop and a coffee proposition. The North America division saw a 7% revenue increase on a constant currency basis, with a 2% rise in like-for-like revenue, driven by various business strategies.
WHSmith’s Air business, a significant part of its North America division, reported a 4% increase in like-for-like revenue and 9% growth on a constant currency basis. The company attributed this growth to its meticulous space management approach, product range enhancements, and the robust nature of its operations.
Industry experts view WHSmith’s shift towards the travel market as a strategic move in response to changing consumer behaviors and the impact of the pandemic on retail. By capitalizing on the increasing passenger numbers and optimizing its store formats, the company aims to drive sustained growth in the competitive retail landscape.
With a history spanning over two centuries, WHSmith’s evolution reflects the adaptability required for businesses to thrive in a dynamic global market. The company’s commitment to innovation, cost efficiency, and market agility positions it well to navigate future challenges and seize emerging opportunities.
As WHSmith charts its course for global expansion, its emphasis on value creation and operational excellence underscores a long-term vision for sustainable growth. By aligning its business strategies with evolving consumer trends and market dynamics, WHSmith aims to establish a strong foothold in the global retail landscape.
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