INTERVIEW: WHSMITH INTERNATIONAL


in Europe, 104 in the Middle East and 120 in Asia Pacific. Currently, WHSmith has a


relatively small share of the international news, books and convenience market outside of North America but says there is solid opportunity to grow its presence in the space. WHSmith completed the


acquisition of US travel retailer Marshall Retail Group in December 2019 and airport-based tech accessories retailer InMotion in 2018, unlocking the entire North American airport speciality retail market in the process. McNally reminds TRBusiness that


WHSmith had been in the US market for a number of years prior to the InMotion acquisition [WHSmith announced the sale of its US holdings to Hudson in 2003 - Ed]. “What is very unique about


the US market is not only do you have to come with a news and gift proposition, you have to come with a number of associated brands as well,” he explains. “It’s quite rare for a news and gift bid package to just be news and gifts. We acquired InMotion, not only because it’s a fantastic business and presents lots of opportunities for us developing that business in the US, understanding the market better so we could enter the market as WHSmith, but also moving that InMotion brand outside of the US.” Currently, InMotion possesses


three stores outside the US at Leeds Bradford Airport, Perth Airport and Alicante Airport. Asked whether


further


international expansion of the InMotion brand outside the US markets remains on the cards, McNally says: “We are taking that brand outside the US, but only when it’s relevant. “It’s a fantastic brand and what


it does brilliantly is customer service, the way in which it ensures the product gets into the hands of the customer, the trial and demonstration is a fantastic skill. “We’ve been very careful to


transplant that customer service as we transplant the brand and we need to do that carefully so we can deliver against those brand values.


DECEMBER 2020


Heathrow Terminal 2 houses a new blended travel essentials shop from WHSmith featuring a ‘Well Pharmacy’.


TRBUSINESS 19 “We’d be very happy to take the


brand wherever the market is ready. At this stage, very much in travel retail and airport retailing as opposed to any other retailing. But if there is a gap in the market, by all means we will look at any opportunity that is there and are committed to doing so.”


Steady pax recovery Asked about development plans for MRG, McNally says WHSmith is committed to growing its presence in the US through the brand. “MRG had a fantastic record of


winning business and that track record has continued. They have an excellent management team and do an excellent job, create concepts that are so well tailored to the locality. This is disproportionately important to the US market as it’s predominantly a domestic traveller [being served].” Much of this is down to a shrewd


focus on well-sourced local products that extend beyond the typical ‘sense of place’ axiom to ensure relevancy. For the UK Travel division, hospitals


sat as the second biggest revenue segment pre-Covid behind air and in front of rail. For air, McNally expects a steady recovery in pax volumes. “If you look at the forecasts,


people are talking about passenger numbers going back to 2019 levels in late 2023/early 2024. But all those were announced before the vaccines. “Wherever we can open a store – we will, to serve the customer and


“We’d be very happy to take the InMotion brand wherever the market is ready. At this stage, very much in travel retail and airport retailing as opposed to any other retailing. But if there is a gap in the market, by all means we will look at any opportunity.”


Phil McNally,


Managing Director – International, WHSmith


landlord. We have opened far more quickly in a number of locations than our peers because we think it’s really important to be there serving travelling customers. “Therefore, as passenger numbers


come back we will be very well placed to take a higher share of where we are currently. We are actively looking at opportunities right now and are very keen on growing within many markets around the world.” «


Above: Gotham News at La Guardia Airport. WHSmith is keen to grow its share of the intl news, books and convenience market outside NA. Source: Eamonn Conway.


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