The 232-year-old chain seeks a buyer for its 500 UK high street stores, with potential job losses looming for its workforce.
WH Smith has shaken up the UK retail sector by announcing the sale of its 500 high street stores, a move that has left its 5,000 employees in limbo. The company, which has been a fixture on the high street for 232 years, confirmed it is in discussions with potential buyers, focusing on freeing itself to concentrate on its more lucrative travel retail business.
The high street stores, which offer products ranging from newspapers and books to stationery and gifts, represent a significant part of WH Smith’s heritage. However, the company is now looking to divest itself of this portion of its business to focus on its travel arm, which operates in airports, train stations, and hospitals across 32 countries. The travel stores have proven to be far more profitable, generating around three-quarters of the company’s £1.9bn revenue for the year ending August 2024.
As part of the sale, negotiations will include the potential for the WH Smith brand to disappear from the high street, though it could remain in the travel sector. The prospect of a turnaround firm, like restructuring firm Alteri, buying the stores has raised concerns about job cuts and store closures, especially as WH Smith’s high street staff are not unionised.
Experts, including Kien Tan from PwC, have pointed out that the business model that works in travel stores is no longer suitable for the high street, where many of WH Smith’s offerings can be found elsewhere. Tan suggested that high street stores might evolve into something more akin to a café or service hub to draw in customers.
This move is not the first time WH Smith has attempted to restructure its business. The company briefly explored a full sale in 2004, but negotiations fell apart due to pension liabilities. However, those obstacles were cleared in 2022 when the company sold off its pension liabilities, making this sale more feasible.
The company confirmed over the weekend that it is exploring strategic options, including a possible sale, but noted that no deal is guaranteed. Further updates will be provided as the situation develops.
