As reported in the Financial Times, UK newsagent chain WH Smith experienced a 4% decline in UK high street sales like for like in the latest quarter. While it’s not ideal to compare performance to a UK business and one with hundreds of outlets, it is interesting to see data from theUK in a business selling a similar range of products to what we sell.
WH Smith is a very different business from 20 years ago. They have focused on higher margin products and been harsh on costs so the result has been falling top line sales and growth in net profit. In the challenging UK high street with a number of big names failing, Clinton Cards being the latest, it’s a remarkable feat.
Steve, my experience with Smiths visiting several stores a couple of months ago was the lack of shop floor assistance to drive sales. If there were in the US they would load up with staff and probably see a sales lift. Of course, the key difference there is the cost of labour.
Yes, I agree with you on staffing. A long way from when I was one of their branch managers. Their High Street division suffers from the problems the UK high streets face, reinvention is 20 plus years over due, but may now be coming if the Mary Portas plan works.