Toys n Playthings are reporting profit losses in 2017 for Hamleys, and a drop in profits at WH Smith who have subsequently announced restructuring plans. Here’s the news about Hamleys….
[Hamleys have] delivered a loss after tax of £8,642,000. They say the results reflect “the difficult retail environment which existed in the UK in 2017 resulting in higher costs such as rents, business rates and the adverse impact of foreign exchange rates.”
They also cited the “difficult economic environment” with “pressure on disposable income compounded by softening consumer confidence and falling customer footfall due to the threat of terrorism in the UK.”
Last year saw Hamleys closed two proprietary stores due to leases expiring or loss-making but opened four stores – at the end of 2017 Hamleys operated 25 stores within the UK.
They add that the UK market “remains challenging in 2018 as spending continues to be impacted by unprecedented consumer uncertainty”.
Meanwhile at WH Smith….
WH Smith has said it will close six stores and is halting its Cardmarket chain, of which there are 20 outlets, and its franchised convenience store arm WH Smith Local, after carrying out a detailed review into its businesses.
In the year trading till August, WH Smith’s profits dropped to £60m from £62m, while like-for-like revenues also fell three per cent.
WH Smith boasts 610 high street stores in the UK and 839 travel outlets.
However, in a statement it credited slime products as giving the business a boost.
“We had a good year in high street despite the well-documented challenges of the UK high street,” said Stephen Clarke, group chief executive of WH Smith.
“During an encouraging second half, the business traded well and we quickly identified the latest trend in the market, becoming a one-stop-shop for all slime-related products.
“Despite this good performance, we are not ignoring the broader challenges on the UK high street and, during the second half, we conducted a business review to ensure our high street business is fit for purpose now and for the future.”
