WH Smith has reported rising profits across its shops at airports and railway stations as it prepares to sell its high street estate and focus purely on travel outlets.
Profit across its travel shops rose by 17% to £63 million in the six months to February, compared with the previous year.
Meanwhile, profit at its high street business slumped by a quarter to just £20 million, it said in a trading statement weeks after revealing it is selling the division.
Chief executive Carl Cowling said the group is “well-positioned for the peak summer trading period”.
He added: “We are mindful of the increased level of geopolitical and economic uncertainty; however, given the resilient nature of our business, we are well-positioned to benefit from the growth opportunities in global travel retail.”
The high street stalwart announced last month that it is selling its non-travel stores to Hobbycraft owner Modella Capital in a deal valuing it at £76 million.
It means the WH Smith name will disappear from high streets and be replaced by a new brand, TGJones.
The move comes after years of declining high street profits, while WH Smith’s travel division has grown to make up the bulk of its sales and profits, with more than 1,200 stores across 32 countries.
The travel division saw revenue grow 6% over the first half of its financial year, marking a slight slowdown down from the 7% growth in the first quarter.
WH Smith said it expects to grow rapidly across airports and stations over the coming years, with a particular focus on North America.
It pointed to planned stores in the US cities of Albuquerque, Dallas and Portland, as part of a 26-strong group of stores coming soon across its North American estate.
It said: “Passenger numbers are forecast to double over the next two decades, driven by population and economic growth.
“We are also seeing significant investment in airport infrastructure, creating an improved retail offer for travellers.
“In addition, as landlords look to consolidate formats in travel retail, we are in a strong position to execute and further roll out our one-stop-shop format.”
