Interview: WH Smith building overseas travel footprint
WH Smith is further expanding its overseas business in the 20 countries in which it operates with more travel stores planned as well as diversification through a variety of new concepts. By Glynn Davis
Ahead of speaking at The Retail Bulletin International Expansion Summit 2014 on March 25th, Louis de Bourgoing, international director at WH Smith, revealed some of the activity the company is involved in around the globe.
Only four years ago the company had a presence in only two countries – India and Denmark – but today it is in 20 countries, predominantly running airport stores. And more are planned as international travel stores are a priority for the business.
“Our market share in the UK is high so it’s logical to go overseas. We start with airports and we’re very flexible, with three models – company-owned stores, joint-ventures and franchise stores – and it depends on the size of the market which we use,” he explains.
Never Miss a Retail Update!Regardless of the model the main concept is travel stores focused on news, books and convenience comprising travel accessories and food and drink. There is also a push on a smaller WH Smith Express version that specializes more on convenience and measures only 500 sq ft versus the regular store’s 1,000-1,500 sq ft.
De Bourgoing says there are also some high street stores opening up in overseas markets although the focus is largely on travel at the moment. This is a natural start for WH Smith as it opened its first such unit, in a UK train station, in 1848.
“Everybody sees us as experts in taking care of passengers. It’s been our bread and butter for ever. We’re therefore in a very good position with the brand known by travellers and landlords. And lots of English people now run airports around the world,” he says.
The company also has the advantage of scale, which makes it possible for it to design and manufacture own-brand products that are made available to all its partners in its various overseas markets.
However, there is plenty of localisation in the stores’ offerings – helped by the use of regional hubs (such as Sydney) and overseas buying offices (such as Hong Kong). He cites magazines and books as being very local, and it is the same with the souvenirs. The company therefore has to be adept at tailoring its offer to each market.
As for new markets, de Bourgoing says the company is considering Kazakhstan and maybe Thailand too, but the main focus is on adding outlets in existing countries: “We’ve put the flag in many countries so we’re doing more there. There are still lots to do in China and India for instance.”
In these countries WH Smith is diversifying into new areas – around the core travel offering – with coffee shops incorporated into some stores with partners or via the company’s own brand. Other new store concepts that have emerged include a toy store Zoodle, the Gadgetshop, ‘Memories of…..’ souvenir shops such as ‘Memories of Australia’, and Funky Pigeon card and gift shops.
