Smiths News sees stores reopening after lockdown

The company said currently less than 5% of its customers’ stores, predominantly in travel and leisure locations, remain closed. This is compared to 25% of its customers’stores that closed at the height of lockdown.

As a result, newspaper sales in the 15-week period to 4 July 2020 have been 12% lower than the equivalent period pre-lockdown, while magazine sales in the same 15-week period are 18% lower. The company said it expects continued improvement in magazine sales during July and August 2020 as retailers re-stock to current content and copy.

Sales at Smiths News for the period 1 September 2019 to 4 July 2020 were £927m, a decrease of 8.4%. Connect Group said that during the same period, Smiths News has continued to deliver operational cost reductions and savings are expected to be in excess of £5m in the financial year. Additionally, Connect Group said it has identified a further £4m per year of savings from the re-organisation of the operating structure of the business.

Jonathan Bunting, chief executive, said: “In what has been unprecedented times for everyone, I am overwhelmed by the dedication and unstinting support of our colleagues which, together with the hard work of our supply chain partners, has ensured that we have continued to provide newspapers and magazines to every community, every day.

“Our trading performance is a pleasingly resilient one, and we have also taken the right action to prepare the business for the year ahead.”