WHSmith has grabbed access to more than one million potential new book-buying customers with a BT internet deal.
WHSmith Online, which the stationery chain claims is already Britain's biggest web bookseller, will become BT's principal books retailer on all BT-controlled internet services including btclick.com, BT Internet and email address service talk21.
Details of the new internet deal came as Smith's revealed a solid set of Christmas trading figures.
Many analysts had expected the chain to issue a profit warning based on lacklustre seasonal sales but, in the event, the group reported total sales up 2.5% in the 19 weeks to January 8 and like-for-like sales, which exclude sales gained as a result of extra shopfloor space, up 1.5%.
Book sales climbed 7% and the company said there was also "a strong performance in computer and telephone peripherals." The music, video and computer game business was much tougher, leaving margins down 0.2% overall.
Internet orders in the year to date were up 85% and underlying sales at Hodder Headline, the publisher acquired by WHSmith last May, were ahead by 8%.
Chief executive Richard Handover said: "This was a tough Christmas trading period and we have performed well in difficult conditions".
He said he was pleased with results in books, magazines and stationery but there was "a lot of scope to improve" in music and video.
The shares, which stood at 492p on January 4, closed up just p at 345p. Less than 12 months ago they were changing hands at 775p.
WHSmith aims to grab 30% of the British online book market within three years and plans to offer buyers the opportunity to have their purchases delivered to their home or work, or to their nearest WHSmith branch, if that is more convenient.
As part of its expansion plan the retailer last year bought the Hodder Headline publisher whose authors include Stephen King and Manchester United football manager Sir Alex Ferguson.
Analysts said that there was relief in the City that the company had produced such good results. "There were expectations that they would do a deal with somebody to give them access to more eyeballs," said Credit Suisse First Boston's stores analyst, Tony Shiret.
