Retailer WH Smith has revealed a big rise in profits, despite overall falling sales - especially in the CD and DVD domain. Smiths' sales fell 7% overall in the last year - with book sales down 5%, stationery down 4% and 'entertainment', mainly CDs and DVDs, down 20%. Needless to say, the high street chain is still being hammered by the pesky supermarkets, who are supplying much of Smiths' traditional customer base with access to cost cutting books, stationery, CDs and DVDs.
But, despite those sale figures, the company saw a leap in profits - up by 14% to £42 million - mainly thanks to various changes made by CEO Kate Swann in the last year, in particular ending unprofitable promotions, shifting to higher-margin goods and cutting costs.
The sales decline has apparently continued at the start of the current financial year but Swann says she's not too bothered: "It is not bad news. It is part of the plan. We didn't expect sales to go up this year and we don't expect them to go up next year either. It is not part of the plan for the next few years."
Music wise Swann's plans will see Smiths' music departments become increasingly chart and promotions focused, dropping any back catalogue the chains still stocked.