WH Smith airport and rail stores eclipse High Street

WH Smith today hit a landmark point in its 225-year history — with its stores in train stations and airports now larger than its High Street arm.

The retailer said its travel stores now generate the bulk of its revenues and profits after targeting shoppers as far away as Singapore.

Travel now accounts for £624 million of its £1.3 billion revenues. Profits from stores in airport, railways and motorway services stations rose 10% to £96 million and now account for 60% of the business. Group profits were up 7% to £140 million in the year to August 31.

WH Smith has expanded its travel arm significantly in recent years, including a presence in 45 airports outside the UK.

On the High Street, the group matched its record profits haul of £62 million from last year, when sales were helped by the demand for adult colouring books.

Even though this trend is on the wane, a revival in customer demand for printed books has helped this side of the business.

Chief executive Steve Clarke said: “Over the last three years, the physical books market has stabilised. Publishers say early adopters are not replacing their e-readers and going back to physical books again.”

While the chain was closing its standalone book stores a few years ago, it is now opening new ones. A bookshop opened at Euston station earlier this year and another is planned for London Bridge station in January.

In stationery, WH Smith said it continued to hold a market-leading position with same-store sales up 3% in the past year. It is now dedicating more space and prominence to pens and pencils in many stores.

Shares have been close to record highs in recent weeks but were down nearly 2% at 2032p today. The final dividend is increased by 10% to 48.2p a share and a further share buy-back of up to £50 million is also planned.