Caution as WH Smith sales slip

Published on Thursday 12 November 2009 19:46

RETAIL chain WH Smith yesterday revealed like-for-like high street sales fell 4 per cent in its latest trading period, writes Martin Flanagan.

The company said it remained cautious on trading prospects after also seeing same-floorspace sales at airports and railway stations drop 2 per cent in the ten weeks to 7 November. Total group sales slid 1 per cent.

In a brief trading update, WH Smith it said it was braced for a challenging festive season.

"Whilst we remain cautious about the consumer environment and anticipate competitive trading in our markets over the key Christmas period, we have planned accordingly," it said.

Kate Swann, group chief executive, has reduced Smith's exposure to the highly competitive entertainment market, including CDs and DVDs. It is now focused on its core books, stationery and confectionery markets.

Smith has a low average transaction value of about 5 in its high street business and about 3.50 in its travel business, so has tended to be less affected than other retailers by recession.