WH Smith PLC, the iconic British retailer founded in 1792, has reported a robust 7% increase in global travel revenue (on a constant currency basis) for the 13 weeks ending 31 May 2025. This impressive surge underscores the group’s strategic shift from high street retail toward travel-focused outlets across airports, rail stations, hospitals, and other transport hubs.

With the pending sale of its UK high street division to Modella Capital—and its exit scheduled by the end of June 2025—WH Smith is entering the summer season as a pure-play travel retailer

1. UK Travel Division: Up 5% (+6% LFL)

  • Total revenue in the UK travel division increased by 5%, with 6% like-for-like growth year‑on‑year
  • Channel highlights:
    • Airports showed 7% LFL growth.
    • Rail stations rose by 6%.
    • Hospitals were up 3%
  • In Scotland, WH Smith refurbished seven stores at Edinburgh Airport, launching new one-stop-shop formats, standalone bookshops, and its first Smith’s Family Kitchen coffee outlet—an innovative addition driving footfall and average basket size .

Context: UK aviation activity has recovered substantially. According to Civil Aviation Authority data, passenger throughput at UK airports grew about 7% in 2024 compared to 2023 . London’s principal airports—Heathrow (79 m), Gatwick (43 m), Manchester (30 m), Edinburgh (15.8 m)—all posted growth in passenger traffic, supporting the retail‐recovery narrative

2. North America: +7% Revenue (2% LFL)

  • For the North American travel division, total revenue rose 7%, while like-for-like sales climbed 2% .
  • Performance was driven by:
    • A “forensic approach to space management”, optimizing store layouts and maximizing SKU effectiveness.
    • Strong per‑passenger spending, especially in airports.
    • Rollout of ten new store openings across major airports in Calgary, Detroit, Denver, Washington, and others
  • Specifically, the Air business (Travel Essentials & InMotion) increased by 9% in total, with 4% LFL growth .

Context: Although U.S. February 2025 enplanements were slightly down compared to the record highs of early 2024, air travel remains robust—with around 67 million enplanements in February, a 4.6% decline from its peak . WH Smith’s North America performance underscores a resilient demand environment.

3. Rest of the World: +12% (+7% LFL)

  • The Rest‑of‑World division delivered a 12% increase in total travel revenue and 7% LFL growth, supported by rising air passenger numbers in key international markets .
  • This stronger performance reflects improving global traveller confidence and traffic flows in regions rebuilding after pandemic disruption.

4. High Street Exit & Strategic Focus

  • In March 2025, WH Smith announced the sale of its UK high street business (circa 480 stores) to Modella Capital for £76 million, with completion targeted by end-June 2025 .
  • The high-street brand is set to reemerge as “TGJones”, while WH Smith’s travel division retains the iconic brand .
  • This disposal will complete the retailer’s strategic transition, as the travel division now accounts for 75% of group revenue and 85% of trading profit .

5. Strengths and Outlook

  • Space management discipline and new format rollouts (coffee, books) have driven passenger spend and shop dwell time.
  • All regions are outperforming; North America’s +9% airport growth signals further expansion potential .
  • The travel division’s performance is steadily reassuring analysts. Following this update:
    • Shares rose ~3% to ~1,054 p and remain positive despite YTD decline
    • RBC and J.P.Morgan emphasized that the U.S. environment is stable, with continued travel strength
  • The timing ahead of the peak summer travel season is critical; WH Smith states that its cost, cash discipline, and market-ready structure position it well to exploit value-creation opportunities .

6. Government Data Supports Travel Lane Recovery

  • UK rail journeys also recovered strongly—4th quarter of 2024 saw 446 million trips, a 7% rise YoY, with passenger revenue hitting £2.9 billion (+8%)
  • Such data confirm that public transit and travel hub traffic—WH Smith’s core environments—are rebounding. Combined air and rail data reinforce the retailer’s growth thesis.
  • For air travel specifically, the UK Civil Aviation Authority reports 2024 passenger volumes at 295 million nationwide (+7% vs 2023), up from 224 million in 2022
  • In the U.S., 67.2 million enplanements in February 2025 (only 4.6% below the 2024 peak) highlight ongoing recovery

These trends lend empirical weight to WH Smith’s performance: footfall is growing, and passenger behaviour is increasingly favourable for travel‑retail spending.

Strategic Outlook & Conclusion

WH Smith’s June 2025 trading update signals a compelling transformation:

  • Transition to pure travel retail: The high-street sale completes its strategic pivot.
  • Omni‑channel travel experience: Airport shops now include coffee, bookshops, and essentials for varied passenger needs.
  • Global travel tailwinds: Recovery in UK, North America, and international travel aligns with official data from the CAA and U.S. DOT/BTS.

Looking ahead:

  • Peak summer advantage: With disposed assets and optimized operations, WH Smith is lean, focussed, and set to capture peak-season travel spend.
  • Expansion underway: New store pipeline remains strong—particularly in North America—reshaping the retail footprint.

In summary, WH Smith’s 7% revenue growth across travel markets isn’t isolated—it reflects structural momentum, strategically supported by government-verified increases in air and rail passenger numbers. As the high street fades and modern travel hubs gain prominence, WH Smith is emerging as a resilient, growth‑oriented, global travel‑retail specialist.

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