A comic revival of Enid Blyton’s Famous Five characters gave WH Smith reason for cheer over the key festive trading period.
Strong sales of spoof titles such as Five on Brexit Island, Five Give up the Booze, and the Ladybird Books for Grown-Ups series, helped to lift sales by 1% at stores open for more than a year over the 21 weeks to 21 January. Total sales rose by 2%.
While customers returned to the adventures of Julian, Dick, Anne, George and dog Timmy, first introduced to the public during the second world war, they turned their backs on adult colouring books. Hugely popular over the same period a year earlier, sales tumbled by about 60% to 70%, according to the WH Smith chief executive, Stephen Clarke.
“They have fallen off a cliff,” Clarke said. “Last year was their first year really and people are no longer colouring in the way they were.”
The retailer, which this year celebrates its 225th birthday, said higher customer numbers at its airport shops over Christmas also helped boosted trade. Sales within the travel division – which also includes motorway service stations, hospitals and railway stations – grew by 5%, but were down by 3% at its shops on UK high streets.
Clarke said the group was up against the toughest year-on-year sales comparisons in more than a decade, after the first rise in Christmas like-for-like sales at high street in 12 years last year, fuelled by the colouring craze.
“As a result of the performance in travel we expect group profit growth for the year to be slightly ahead of plan,” Clarke said.
“While there is some uncertainty in the broader economic environment, we remain confident that the group is well positioned for the year ahead as we continue to focus on profitable growth, cash generation and investing in new opportunities.”
Clarke said WH Smith customers would be protected from Brexit-related price rises this year, partly because only about 5% of the goods and materials bought by the company are priced in dollars. Some retailers have warned that the weak pound will lead to a rise in prices this year, as materials imported from abroad are more expensive.
“We’re in a slightly better position than other retailers, particularly clothing retailers and electronics,” said Clark. “We’re doing everything we can to avoid putting our prices up.”
Shares in the retailer rose by 7.6% to £15.93, making the retailer the biggest riser on the FTSE 250.
Retail analyst Nick Bubb said the trading update would be a source of relief for investors. “Although the comparisons were tough, the business has come through well. How far the 225th anniversary celebrations of the company help trade this year remains to be seen, but the City will be relieved by the strong Christmas trading performance,” he said.
WH Smith now has 145 post offices inside its high street shops, with a further 23 planned over the rest of the financial year.
Top 10 bestselling spoof books
1. Five on Brexit Island
2. The Grandparent*
3. The Cat*
4. The Dog*
5. Five Give up the Booze
6. The Meeting*
7. Five go on a Strategy Day
8. The Mum*
9. Zombie Apocalypse*
10. The Husband*
*Titles in the Ladybird Books for Grown-Ups series
