INTERVIEW: WHSMITH INTERNATIONAL


WHSmith Travel keen to build on InMotion footprint with ‘relevant’ international growth


same period last year (-33% on a like- for-like basis). Despite the headlines, McNally


tells TRBusiness that liquidity remains strong, cash burn is down and the international business remains extremely agile. In fact there have been a number


WHSmith commands a relatively small share of the international news, books and convenience market outside North America, though it is actively looking at new growth levers. Managing Director – International, Phil McNally talks to Luke Barras-Hill.


Above: InMotion currently operates three stores outside the US, including at Perth Airport (pictured).


A


results statement reflecting the malaise in international retail due to the heavy


impacts of Covid-19 was not unexpected for WHSmith, according to Phil McNally, Managing Director of the Group’s International division. The Group posted a trading loss


of £33 million/$42 million across its ‘Travel’ division for the full- year ending 31 August 2020, with revenue down 32% (-43% LFL) to £553m/$724m. Unsurprisingly, the wave of travel


restrictions in the second half of the financial year dealt a sizeable blow to passenger numbers. As of 31 August 2020, the ‘Travel’


business that includes Marshall Retail Group (MRG) and InMotion was operating out of 1,174 units. Of this total, 650 were open. However, the number of WHSmith


The ‘Travel’ business posted a trading loss of £33 million for the full-year ending 31 August 2020.


TRBusiness 18 TRBUSINESS


stores that are operating continues to change on a daily basis, with around 50-60% of the international stock trading at any given time, hears TRBusiness. “We are trying to keep as many


stores open as possible because we think it is good for our relationships with our landlords,” explains McNally. “We were very quick to reopen our estate and we work very closely with our landlords to make sure that what we are doing provides a good customer service to the passengers still travelling.”


Business remains ‘agile’ Total revenue for the international division, including contributions from MRG and inMotion, reached £209m, a 17% decline year-on-year. Of the Travel division’s £33m trading loss, £32m relates to the international businesses. In the UK, revenue fell by 39%


year-on-year to £344 million. In the air segment, total revenue was down by 48%. In the rail sector, total revenue declined by 42%. Group revenue reached £1,021m, a 27% decrease compared with the


of bright chinks of light for Travel, notably new store openings in the second half of the year for InMotion and MRG. In the UK, WHSmith recently opened a blended travel essentials store at London Heathrow Airport Terminal 2. The shop offers a combination of


categories including confectionery, news and pharmacy goods fusing a best-in-class design with an in- house pharmacy. “The feedback has been really


positive,” responds McNally. “I was in that store early on talking to customers and with landlords around the world who are interested in that sort of proposition. For the customer, it gets you to all of your travel essentials. With social distancing in place there is a bit of inertia around shopping so it’s great to get everything under one roof. The numbers have been well ahead of our expectations. “Prospective landlords like the


idea of it because it allows them to get shoppers through the essential shopping first in quicker time. That then allows them to browse the more luxury end of retail. “We are in active discussions with


a number of airports on that type of proposition. It doesn’t necessarily translate identically around the world. If we were to roll it out outside the UK, it would look quite different to what we have in the UK.” Within the international Travel


division, North America represents approximately 50% of the Group’s stores outside the UK. The Travel division has a global


presence outside the UK in more than 100 airports and 30 countries with 277 units in North America, 83


DECEMBER 2020


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