When WH Smith PLC (LSE:SMWH) updates investors on Friday 26 January about trading since August it will do so with its shares having lost around 20% of their value, despite a confident set of results in November.
Struggles within the retail sector on the back of inflated living costs are likely to be on investor’s minds, alongside regulatory calls for greater competition between shops within Britain’s railway stations.
Indeed, WH Smith generated a £164 million profit from sites within the likes of airports and railway stations last year - up 80% on 2022. This compares to £32 million in profit from its high street branches.
High street retailers have suffered as household budgets were squeezed toward the end of last year and particularly in the run-up to Christmas, with official statistics today showing retail sales fell 3.2% in December, following a rise of 1.4% in November.
Barclays data also suggests total UK consumer spending has fallen in each consecutive full month since August.
In November, along with a bigger than expected dividend, WH Smith said the new financial year had seen a "strong start", with UK Travel revenue up 13% in the first nine weeks to 4 November, up 15% in North America and up 27% in the Rest of the World.
As for competition issues, the Office of Rail and Road in December said it wanted to attract a wider range of retail brands to help improve things for consumers, with railway stations not having any current incentive to different new shops or to scrutinise higher prices charged. Investigations are ongoing.