WH Smith trials in-store coffee and mobile phone shops

LONDON – WH Smith is to trial Costa Coffee shops and Virgin Mobile outlets in 28 of its major stores in an attempt to boost flagging sales, which has been blamed on supermarkets moving into the books and DVD market.

The retailer has given the go-ahead for 20 Costa Coffee sites and eight Virgin Mobile concessions to open on a trial basis and has said it will extend the deal if it proves successful.

Half-year profits at WH Smith dropped by 29% in April this year. The trouble retailer blames rival supermarket chains for poor sales as customers favour "buying everything under one roof" and are turning away from the high street in favour of large out-of-town superstores like Tesco or Asda.

Sue Wharton, development director at WH Smith, said: "We felt there was a natural synergy between our customer offer and coffee shops and mobile phones."

The trial Costa Coffee shops will open in Reading, Chester, Cardiff, Chelmsford, Thurrock, York, Birmingham, Swansea, Bluewater, Peterborough, Bristol, Manchester, Kingston-upon-Thames, Watford, Brent Cross and Gateshead.

Virgin Mobile concessions will feature in Croydon, Leicester, Leeds, Tunbridge Wells, Birmingham, Coventry, York and Guildford stores. The outlets will mirror designs in Virgin Megastore and Virgin Xpress outlets and will be run by Virgin Mobile staff.

The decision on further implementation of the concessions will be taken in January following a full evaluation of the trial stores. WH Smith could expand the deal to 545 high street stores if successful.

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