WH Smith has hinted at more high street shop closures as nearly 500 stores approach the end of their lease.
The newsagent and book retailer, which closed a major store on Aberdeen's Union Street earlier this year, now makes just 15% of its money from the high street, focussing instead on outlets in airports and rail stations.
In a trading update this morning, the firm said it remained committed to the high street, where its shops are "profitable and cash generative".
However, the firm revealed that 475 of its leases are due for renewal over the next three years, and that negotiations are only ongoing with around 100 of them.
"Over the years, we have actively looked to put as much flexibility into our store leases as we can, which means we are well positioned to respond to changing market conditions," the group said.
"The average lease length in our high street business, including where we are currently holding over at lease end, is under two years. We only renew a lease where we are confident of delivering economic value over the life of that lease.
"We have c.475 leases due for renewal over the next three years, including over 100 where we are holding over and in negotiation with the landlord. The store closure process is broadly cash neutral."
Its most recent round of store closures, including Aberdeen, was part of a round of efficiencies which the retailer expects to achieve savings of £13million this year.
Overall the business made a profit of £50million in the first half of its financial year, up from £47million in the same period last year.
Carl Cowling, Group Chief Executive, said: "Our travel divisions are trading well and I am particularly pleased with the outstanding performance from our UK Travel business which has seen a 19% increase in trading profit.
"We continue to make excellent progress in this division, growing our space and broadening our categories as we transition to a one-stop-shop for travel essentials."
FTSE 100
The UK's flagship share index, the FTSE 100, was up 47-points at 8,087 shortly after opening this morning.
Brent crude oil futures were up 0.28%, trading at $88.27 a barrel.
Companies reporting today
Alphabet | Q1 Results |
AstraZeneca | Q1 Results |
Barclays | Q1 Results |
Caterpillar | Q1 Results |
Drax Group | Trading Statement |
Hikma Pharmaceuticals | Trading Statement |
Inchcape | Q1 Trading Statement |
Indivior | Q1 Results |
London Stock Exchange Group | Q1 Trading Statement |
Microsoft | Q3 Results |
Nestle | Q1 Trading Statement |
Persimmon | Trading Statement |
PPHE Hotel Group | Q1 Trading Statement |
RELX | Trading Statement |
Sainsbury | Full Year Results |
Schroders | Q1 Assets Under Management |
Travis Perkins | Q1 Trading Statement |
Unilever | Q1 Trading Statement |
WAG Payment Solutions | Q1 Trading Statement |
Weir Group | Q1 Results |
WH Smith | Half Year Results |
WPP | Q1 Trading Statement |