Troubled WH Smith has shut some of its international shops as it looks to recover from an accounting blunder.
The retailer, which hopes to be a ‘one stop travel shop’ business after selling its High Street division, said it has closed around seven shops so far.
And it said it was ‘mindful’ over the war in the Middle East and the ‘impact that this is having on passenger numbers across our key markets’ after thousands of flights have been cancelled.
It added: ‘We will continue to monitor the situation and focus on what we can control, including executing against our clear strategic priorities and strengthening our focus on cost and cash discipline.’
Closures included shutting three shops in Las Vegas, where it operates individually branded souvenir and fashion shops, which has seen a ‘continued reduction’ in visitor numbers.
WH Smith stands to be impacted by a slump in global travel should conflict in the Middle East continue
This slump caused sales at its resorts business to fall 6 per cent over the six months to February 28.
It comes as incoming chairman Leo Quinn is reportedly set to make a major shake-up of the group’s US business when he starts in April – including its more than 300 stores in airports and resorts like Caesars Palace in Las Vegas.
The group also said it continues to ‘actively manage our international store portfolio and will exit sub-scale markets as contracts expire or through targeted portfolio actions.’ It shut four ‘uneconomic stores’ at Düsseldorf Airport.
Total sales rose 5 per cent over the first half, helped by double-digit growth in the US, as the company hopes to move on from an accounting scandal last year which saw its top bosses step down.
WH Smith is under investigation by the City watchdog after profits in its US division were overstated by £30 million when income from suppliers was booked early.
It follows reports that around 80 former WH Smith shops on the High Street could be shut under cost-saving plans – following the sale of 480 shops to private equity firm Modella Capital last summer.
This sparked fresh fears over a wave of closures on the high street – after brands from Poundland to River Island have shut shops in recent months.
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