Thomson Financial reports that Kate Swann, chief executive of WHSmith, has again warned investors not to expect the group to deliver underlying sales growth any time soon. “In terms of sales growth, it’s difficult to put a time on that, but I think it’s unlikely to be in the short term … It’s unlikely that we’ll return to sales growth for the next few years as we continue to manage that [product] mix,” she told reporters after the retailer reported slightly better-than-expected interim results. Her strategy is to focus on cost-cutting and improvements to gross margins, by shifting the mix of products, rather than driving top line sales.
In related news, the chain plans to open up post office outlets in selected stores, according to the BBC. The move, which follows trials in six outlets, will boost WH Smith’s annual profits by about £2.5m, the firm said.