British retailer WHSmith signs on to use Xiatech AI powered Xfuze integration, data and analytics platform

WHSmith has chosen Xiatech, the company behind Xfuze, pitched as the world’s first composable hyper-integration platform, as its partner to support the acceleration of the business’ growth and international expansion.

The ten-year partnership will involve WHSmith deploying Xfuze to create a real-time, hyper-connected business by integrating the system landscape and creating a single view of trusted data (including customers, sales, product, inventory), supporting the retailer’s operations and decision-making across its global business.

Lyndon Hearn, Group CIO, WHSmith, says: “As a business operating in more than 30 countries around the world, we are always looking at how we can consistently deliver the best possible experience for our customers, no matter where they shop with us.”

“We are excited to partner with Xiatech whose innovative integration, data and analytics platform offers us rapid feedback and insights from across our business, helping us stay connected to the needs of our colleagues, customers and suppliers and helping us to always be there for every one of life’s journeys.”

“We are honoured to have been chosen by WHSmith to power the retailer’s travel, high street and international business including its digital transformation for years to come.”

“Our Xfuze platform will enable WHSmith to become a data first retailer using integrated systems, data and processes that, ultimately, improves customer experiences,” says Jonathan Summerfield, CEO at Xiatech.

WHSmith ready for take-off as it enters holiday season in strong position

WHSmith reported a significant deceleration in growth for the 13 weeks ending 1st June 2024, with group revenue rising 5% in Q3 FY2023/24 versus a +23% comparative in Q3 FY2022/23.

This performance was on top of having already seen group revenue fall into single digits in its interim results to 29 February 2024.

“Though growth has slowed in the period, it is still impressive amid the double-digit comparative figures seen in its travel arm in the previous year,” says Tash Van Boxel, Retail Analyst at GlobalData.

“Indeed, the slowed momentum is due to the post-pandemic travel boom, where passenger numbers recovered. Going into the summer, WHSmith is in a prime position to benefit from consumers’ travel plans, with holidays and events abroad forecast to grow, having been inhibited by the cost-of-living crisis in 2023.”

She adds: “In the UK, its travel revenue increased 9% in Q3 FY2023/24, with the best performance seen in hospital hubs (+14%), with air and rail up 8%. WHSmith has continued to diversify its offer, with its food and grocery proposition bolstered recently by the introduction of Smiths Family Kitchen into 300 stores across the country.”

“Strengthening its food-to-go offer will be essential for WHSmith to better compete with food service providers, such as fast-food chains within travel hubs, which offer consumers a fast, high-quality dining on-the-go option.”

Within its high street division, which has been a lingering thorn in its side, revenue fell 4% in Q3 FY2023/24, with like-for-like (L-F-L) sales down 1%. This weak result is despite its new ongoing partnership with Toys “R” Us, which launched in five high street stores and is due to open 25 more stores in the coming quarter.

This partnership may be enough to keep the high street arm out of the negatives in the next trading update.

Van Boxel says: “Though WHSmith already has a toys and games offer in many of its stores, this concession will help it to expand, enabling the retailer to attract a broader audience for its high street shops.”

“Furthermore, we anticipate it will encourage shoppers with younger children to come into the store to browse the Toys “R” Us products and pick up any stationery and books together.”