WH Smith Moves In

British retailer WH Smith appears to be taking advantage of HMV shutting 107 of its stores since Christmas by reintroducing CDs and DVDS into some of its outlets.

The HMV closures have left many high streets and airports without an entertainment outlet, and Smith is looking to plug the gap on a store-by-store basis.

One WH Smith shop where chart CDs and DVDs have been restored is the retailer’s site at London Victoria railway station, one of the company’s most profitable locations. The HMV store at the station closed on Christmas Eve.

WH Smith chief exec Kate Swann had dramatically reduced WH Smith’s exposure to what was once an overcrowded entertainment sector, but a thinning of the ranks may have made space for a strategic reappraisal.

Sales from CDs and DVDs now account for a low single digit percentage of WH Smith’s sales, compared to a quarter when Swann took over.

A WH Smith source told the Daily Telegraph that the company, whose core business is selling newspapers, magazines, book and stationery, is prepared to “go where the profits are.”

In the 20 weeks to January 20, WH Smith reported a 5 percent drop in like-for-like high street sales and a 4 percent decline in its travel stores at airports, railway stations and service station, but Swann says the sales are “ahead” of what she expected and that profits have been boosted by improved margins.