retailworld
08-06-2010, 11:52
Retail chain WH Smith has said the recent volcanic ash cloud crisis had dented third quarter sales at its airport and travel centre sites.
The group reported a 4% slide in like-for-like sales across WH Smith Travel - which operates from 495 outlets in airports, train stations and at motorway service stations - after the ash cloud caused widespread flight chaos.
Excluding the disruption, travel stores sales slipped 2% in the 14 weeks to June 5, but WH Smith has already said the hit was unlikely to affect profits.
The group, which also announced a new chairman to replace five-year incumbent Robert Walker, added that "while airport passenger numbers have, as expected, remained soft, we continue to outperform".
WH Smith failed to deliver any uplift in the high street division since the half year, with comparable sales remaining 4% below a year earlier.
The group is rebalancing the mix of the business away from lower margin CD and DVDs and on to books, stationery and confectionery markets - a move which is impacting sales.
Like-for-like sales across both businesses were down 4% in the 14-week period.
Walker Boyd, who re-joined the board in February as a non-executive director, will become chairman in September. Mr Boyd is currently finance director of jewellery firm Signet, which owns Ernest Jones and H Samuel in the UK as well as major retail operations in the United States.
He will work alongside chief executive Kate Swann, who has overseen a major overhaul of the retail estate and improved the company's fortunes.
The group's defensive qualities - with an average transaction cost of around £5 - has helped it weather the recent tough trading conditions.
Copyright © 2010 The Press Association. All rights reserved.
The group reported a 4% slide in like-for-like sales across WH Smith Travel - which operates from 495 outlets in airports, train stations and at motorway service stations - after the ash cloud caused widespread flight chaos.
Excluding the disruption, travel stores sales slipped 2% in the 14 weeks to June 5, but WH Smith has already said the hit was unlikely to affect profits.
The group, which also announced a new chairman to replace five-year incumbent Robert Walker, added that "while airport passenger numbers have, as expected, remained soft, we continue to outperform".
WH Smith failed to deliver any uplift in the high street division since the half year, with comparable sales remaining 4% below a year earlier.
The group is rebalancing the mix of the business away from lower margin CD and DVDs and on to books, stationery and confectionery markets - a move which is impacting sales.
Like-for-like sales across both businesses were down 4% in the 14-week period.
Walker Boyd, who re-joined the board in February as a non-executive director, will become chairman in September. Mr Boyd is currently finance director of jewellery firm Signet, which owns Ernest Jones and H Samuel in the UK as well as major retail operations in the United States.
He will work alongside chief executive Kate Swann, who has overseen a major overhaul of the retail estate and improved the company's fortunes.
The group's defensive qualities - with an average transaction cost of around £5 - has helped it weather the recent tough trading conditions.
Copyright © 2010 The Press Association. All rights reserved.