WH Smith boosts revenues with new airport and station shops

WH Smith has experienced a significant boost in revenues due to its strategic focus on airport and station shops, which saw a 7% increase in like-for-like revenue for the year ending August 31. This growth helped the company achieve a 5% rise in total turnover, despite facing a 2% decline in high street sales. The travel division's performance was particularly strong during the busy spring and summer months, benefiting from high passenger numbers. In addition to its travel shop success, WH Smith announced plans to open 37 Toys R Us concessions before Christmas, more than doubling its existing mini-outlets. This move marks a notable return for the Toys R Us brand in the UK, following its collapse in February 2018 and subsequent relaunch in October 2022. The partnership with WH Smith aims to capitalize on the brand's recognition and attract customers in a new retail environment. The company is also returning £50 million to shareholders through a share buyback program, alongside an £85 million cash return linked to a recent pension scheme buyout. This financial maneuvering reflects WH Smith's strong position at the end of the financial year, as stated by CEO Carl Cowling, who praised the hard work of employees during a busy summer trading period. Overall, WH Smith's pivot towards travel retailing and the introduction of Toys R Us concessions illustrate its strategy to adapt to changing consumer behaviors and market conditions, positioning the company for future growth despite challenges in traditional retail spaces.