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Daily Mirror
Daily Mirror
Business
James Andrews

WH Smith hospital branches soar as it cashes in on the sick and their families

WH Smith now makes more money from patients, staff and visitors in hospitals than it does at train stations, the firm has said.

Hospital stores are now the second biggest part of the newsagent's travel business, only beaten by airports, helping the firm keep up profits despite the troubles on the British high street.

But hospitals are far from straightforward for the chain - with criticisms that the chain is cashing in on those in need.

Previous research revealed the same products were more expensive in WH Smith hospital stores compared with the same items in its high street branches.

WH Smith ended up bowing to public pressure and cutting prices in hospitals after criticism from politicians that it was targeting the most vulnerable with higher prices.

More recently, it found itself the subject of criticism after a visitor noticed it was charging £7.99 for a tube of toothpaste that cost less than £1 elsewhere.

Bosses said the issue was a pricing error and would be rectified.

Smiths makes more from hospitals than stations (WHSmith)

On the high street, the retailer revealed that strong sales of high-margin stationery have helped save its blushes, with bosses planning to roll out more ranges and offer up more shop floor space to the pens and pads.

The company also highlighted the strength of its Post Office business, with 202 WH Smith stores now hosting them.

Internationally, the company said its new US travel accessory business - InMotion - continues to grow strongly with 428 stores open outside the UK.

WH Smith bought InMotion last year for £155 million, marking its first foray into the US accessory market. The deal dragged down half-year profits 21% to £65 million in the six months to the end of February, including a £9 million hit from the purchase.

Airport branches make the most money in its travel division (WHSmith)

It now has three InMotion stores outside North America - In Perth, Australia; Alicante, Spain; and Leeds Bradford Airport in the UK - and the company has faith in the division.

"We see good scope to grow InMotion both in the US and internationally," WH Smith said in a statement.

"In addition, we see further opportunities to grow our news, books and convenience format in the international travel retail market, where we have a small market share."

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