WH Smith Considers Abandoning High Street After 230 Years
A Shift in Focus
WH Smith, a stalwart of the nation’s high streets for over two centuries, is exploring options to sell its high street arm. This move comes as the retailer continues to pivot towards its thriving travel business, which now accounts for 85% of its trading profit.
A Changing Retail Landscape
Founded in 1792, WH Smith has adapted to the shifting retail landscape by expanding into travel, with stores in train stations, airports, and hospitals. This strategic move has proven successful, with the travel sector driving growth for the company. In contrast, the high street arm has seen flat earnings, despite cost-saving measures.
Challenges Ahead
The retail industry is bracing for a tough year, with rising costs and tax hikes on the horizon. The Centre for Retail Research predicts that 17,350 shops will close in 2025, with retail and hospitality expected to be hit hardest. High-street stores will also face increased property taxes as business rate relief is cut.
A Potential Sale
Bankers from Greenhill have been brought in to explore a potential sale of WH Smith’s high street arm. The value of the WH Smith group as a whole stands at £1.5bn. While no deal is certain, the company is considering its options for this profitable but cash-generative part of the business.
Expert Insights
Clare Bailey, of Retail Champion, believes the decision reflects the decline of high-street shopping. “The travel business is exceptional, but the high street business is not. A good business needs to know when to cut off the dead leg,” she said.
A Trend in Store Closures
WH Smith would not be the first major British brand to move away from the high street. Debenhams, a formerly leading British department store, closed all of its stores in 2021 after 243 years in business. British Home Stores (BHS) also closed its doors in 2016, resulting in significant job losses.
Revitalizing High Streets
A House of Lords report has urged the Government to introduce a “town centre first” policy to revitalize high streets. Recommendations include better access to public toilets, adequate street lighting, and continued support for market traders.
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