Sales recovery at WH Smith takes a knock from Omicron

Sales recovery at WH Smith’s airport and railway station stores is thrown off course by Omicron

  • WH Smith’s travel saw sales recover to 94% of 2019 levels in November 
  • The firm’s high street revenues remained relatively consistent despite Omicron
  • ‘Plan B’ curbs encouraged more working from home and less international travel 


The emergence of the Omicron variant of coronavirus put a break on improving trade at WH Smith’s outlets in airports and railway stations at the end of last year.

While spending at the retailer’s travel division in November bounced back to 94 per cent of its pre-pandemic volumes, the following month saw it decline to 83 per cent of 2019 levels.

Within its UK travel arm, monthly revenues as a percentage of 2019 levels at its airport stores jumped by 29 percentage points between September and November but fell by six points to 65 per cent in December.

Fall back: While spending at WH Smith’s travel division in November bounced back to 94 per cent of its pre-pandemic volumes, December saw it decline to 83 per cent of 2019 levels 

Sales at shops situated in railway stations were less volatile by comparison, but still dropped from 74 per cent of pre-pandemic levels in October and November to 69 per cent in December.   

That month saw the UK Government impose its ‘Plan B’ restrictions due to rising incidences of Omicron, encouraging Britons to work from home if they could and wear face coverings in many indoor public places like shops and theatres.

But though these curbs had a major impact on purchases at WH Smith’s airport stores, revenues at its high street establishments remained relatively consistent over the last four months of 2021 and the first couple of weeks of this year.

The group said this was partly thanks to decent quantities of available stock and healthy trade at its online businesses, such as personalised cards and gifts seller FunkyPigeon.com, and stationery provider Cult Pens.

Its North American travel business held up better than the UK, with increased passenger numbers during the festive period, with bosses highlighting its Las Vegas sites in particular.

Despite troubles at its British airport locations, the company opened 16 InMotion technology accessory stores across UK air travel hubs, including Heathrow and Gatwick airports, and plans to open 14 further stores by the summer.

Travel issues: Since the pandemic started, WH Smith has suffered from steep financial losses caused by the rise of home working slashing commuting travel and the decline in

Travel issues: Since the pandemic started, WH Smith has suffered from steep financial losses caused by the lack of international travel and fewer commuters journeying on trains

Another two InMotion bases are set to open at Dublin Airport during the spring, while more are expected to open in North America, where it has won the tender for 60 sites that are due to start trading in the next three years.

Chief executive Carl Cowling said that while the company expects to incur ‘a small impact from the Omicron variant, we anticipate a resumption in the recovery of our travel markets over the coming months’.

He added: ‘We are well placed for the key trading period in Travel this summer and the ongoing recovery in our markets.’

Since the pandemic began, WH Smith has suffered from steep financial losses caused by the lack of international travel and the rise of home working leading to fewer commuters journeying on trains.

In 2020, it recorded an annual pre-tax loss of £280million even after sales from its main website soared by 240 per cent. It also closed dozens of stores and cut jobs.

Though trade recovered significantly the subsequent year as restrictions loosened and its high street division made a profit, it still made a loss of £116million.

WH Smith’s sharse took a big tumble when those results were announced, but have since recovered well and were 6.6 per cent higher at £16.55 during mid-afternoon on Wednesday. 

AJ Bell’s investment director Russ Mould said: ‘Strategically, the company has remained focused on the longer term, and there are some interesting developments that put WH Smith in a stronger place to thrive once life returns to normal.’ 

‘It has secured more stores in travel hubs, and it is rolling out an initiative whereby it houses a pharmacy within travel shops. If Covid can stop interrupting everyday life, then WH Smith arguably stands a good chance of bouncing back sharply.’



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