WH Smith saw quarterly sales surge at its travel-based stores buoyed by the roll-out of its food range, while its high street network continued to see sales fall.
The magazines and stationary retailer said its travel stores, based in airports and train stations, saw like-for-like sales lift four per cent in the 13 weeks to May 30, helped by the completion of the roll-out its 'food to go' range last summer. Total sales jumped eight per cent.
But its high street business saw same store sales fall four per cent in line with expectations, reflecting a competitive environment for the stationery and books it sells to general consumers rather than travellers. Total sales also fell four per cent.
Its focus on profit rather than sales at the high street business continued to help improve gross margins, with the retailer also saying that cost savings were delivered in line with its plans.
Overall, WH Smith said group sales were up one per cent with like-for-like sales flat.
It said it would continue to invest in opportunities in its travel and high street stores. The firm added it remained "confident for the outcome for the full year", lifting shares three per cent.
Paul Thomas of retail consultancy Retail Remedy said the gap between its travel and high street stores had become a "gulf".
He said: "In a rail station or airport, the WH Smith proposition makes perfect sense. Lean, convenient and with the snacks and mags that will appeal to a time-pressed traveller, it's a winning formula despite its sometimes jaw-dropping prices."
But Mr Thomas added: "By contrast WH Smith's high street branches are unappealing backwaters. From stationery to books or meal deals, most of what they sell can be found cheaper elsewhere."
Cantor Fitzgerald analyst Freddie George said: "The trading update came in slightly above market and our expectations helped by a good performance from the travel business."
Mr George estimated the retailer's full-year results posted in October would show a pre-tax profit up 6.7 per cent to £119.5 million.
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