British travel retailer WH Smith has reported a 4% rise in group revenue for the 21-week period ended 25 January, fuelled by higher footfall as more people travelled during the Christmas holiday season.
The retailer, which sells products ranging from sandwiches to books at travel hubs like airports and railway stations, maintained its forecast 'of another year of good growth' in 2025.
The increase in minimum wages announced in the UK's budget last October, likely to impact around 3 million workers, has boosted the 2025 outlook for the travel industry.
Revenue from WH Smith's Travel Essentials business, the fastest-growing segment of its North American division, saw a 20% growth on a constant currency basis.
Analysts anticipate that this year, consumers will continue to prioritise experiences like dining out and holidays over other discretionary expenses.
The group, with a focus on expanding its footprint in North America, said it plans to open about 60 stores this year in the region.
'Strong Momentum'
Carl Cowling, group chief executive, stated in a trading update, "The group has had a good start to the financial year, and we continue to see strong momentum across our core travel business.
"The Group is in a strong position, and while there is some economic uncertainty, we are confident of another year of good growth in 2025."
Earlier this week, the travel retailer confirmed that it is exploring potential strategic options, including a sale, for its high-street business, which it described as ‘profitable and cash generative part’ of the group.
Currently, the retailer operates around 500 high-street sites in the UK, generating employment for 5,000 staff members.
Russ Mould, investment director at AJ Bell, said in a note, “The future of WH Smith now rests with getting travellers to pay the price for convenience. Its stores at transport hubs take advantage of a captive audience – people don’t have time to shop around, they simply want to pick something up quickly before they catch a train or flight. If someone needs a charger or a new phone as a matter of urgency, they’ll pay whatever is being charged.”
News by Reuters, additional reporting by ESM.
