WH Smith to ramp up Toys "R" Us store openings with 25 new shops

High street stalwart WH Smith says it is on track to open 25 new Toys “R” Us concessions in its high street stores before the end of August.

WH Smith resurrected Toys “R” US, which went bust in 2018, last year with the launch of nine shop-in-shops within its stores. The retailer said that following good early feedback, it will open a further 25 before the end of its financial year in August. After that, it will open another five.

At its third quarter trading update, WH Smith said that sales at its UK high street stores and online were down four percent. However, that was more than offset by growth at its travel arm, US and international divisions.

Travel, which runs shops at airports, train stations, hospitals and motorway service areas, was up nine percent, and international by 16 percent. Overall, group sales are up five percent versus the same period last year.

WH Smith added that in the US, its like-for-like sales were flat. To improve the division’s performance, it is increasing the range of snacks and sweets it sells, as well as the number of chilled cabinets in its stores. It says that the early results from its changes are “encouraging”.

Julie Palmer, partner at Begbies Traynor, said despite the strength of its travel business, WH Smith shareholders are likely to be concerned about its US and UK high street performance.

“WH Smith has been focused on developing a US business for some time, but it’s clearly suffering, like many other retailers, from the weaker consumer backdrop in that market,” she said. “Like other high street retailers, WH Smith is having to weather the current storm and it’s clearly not coming out unscathed.”