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WH Smith's declining sales
WH Smith’s trading statement revealed a further drops in like-for-like sales with high street like-for-like sales down 4% and, surprisingly, travel doing a bit better with (airport shops) like-for-like sales down 2%. This is roughly what one would expect given retail spending in general. The total drop in sales was 1%.
This is, again like much of the sector, a slower rate of decline (last year’s like-for-like declines were 2% in travel and 6% on the high street) — but still a decline.
The statement says “we remain cautious about the consumer environment and anticipate competitive trading in our markets over the key Christmas period”, which appears to bear interpretation as a confirmation of the likelihood of weak Christmas sales.
The market seems pleased with the results, and WH Smith increased profits last year despite declining sales. In the long term it is difficult to imagine any of WH Smith’s product categories (books, stationary, newspapers and magazines) as a market that is likely to do anything other than decline in this networked age.
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