WH Smith considers sale of high street business, including more than 500 stores | Smith
One of the world's oldest retailers, WH Smith, has confirmed it is in talks to sell its city and town center stores, which it describes as “the hub of the high street”.
Established in London's Little Grosvenor Street in 1792 by Henry Walton Smith and his wife Anna, it expanded to become one of the most famous retail chains in the UK. one. Company bosses said at the weekend they were exploring “potential strategic options”, including a possible sale.
The potential sell-off of around 500 high street stores, first reported by Sky News, is being explored as WH Smith focuses on its global travel retail business, focusing on shipping centers operating in 32 countries. High street stores employ around 5,000 staff out of a total retail workforce of around 13,870 people.
The company said: “WH Smith confirms that it is exploring potential strategic options for this profitable and cash-generating part of the group, including a possible sale.
“Over the past decade, WH Smith has established itself as a dedicated global travel retailer. No agreement can be confirmed and a further update will be provided in due course.”
A string of retailers have disappeared from the high street over the years, including Woolworths, British Home Stores and Comet. WH Smith said its high street business was a success, with revenue of £452m and profits of £32m in 2024.
WH Smith grew rapidly in the 19th century, establishing a newspaper publishing business as the railway network expanded. It opened its first retail travel store in London's Euston Station in 1848.
The company now has about 1,290 travel stores across the world, with stores mainly in airports, train stations and hospitals. Its travel business accounted for about three-quarters of the group's revenue of approximately £1.9 billion as of August 31, 2024.
The high street business faces tough competition in online sales and has become a small part of the overall team. Now, the group's latest accounts say: “Our high street division delivered good, profitable performance and continues to generate cash, allowing us to invest across the group”.
The company said its high street stores have supported generations of customers with newspapers, books, stationery, cards and gifts. Its website states: “We pride ourselves on helping people discover new passions and today we're honored to be the hub of High Street.”
Sky News reports that the listed company, which has a market capitalization of nearly £1.5bn, has been talking to a number of potential buyers for weeks and has appointed investment bank Greenhill to run the sale process. It said the future of WH Smith Street had been in doubt for years as other major chains disappeared.
WH Smith chief executive Carl Cowling told the BBC in June 2023 that it would no longer open UK high street stores. He said this would focus on UK airports and train stations, as well as opening stores in the US and Europe.
The company, which is closing 14 of its high street stores in 2023, said it would only renew store leases “where we are confident we will deliver economic value over the term of that lease”. WH Smith will reportedly close 17 stores in the UK this year, including stores in Greater Manchester, Luton, Basingstoke and Bournemouth.
In 2006, the company “spun off” its news distribution arm, now Smith News, into a separate public company.
Analysis by the Center for Retail Research, a company that provides analysis and research on the retail industry, found that 13,479 stores across the UK will be closed in 2024, an increase of 28% in 2023. The center describes the retail industry as one in “Permacracrisis.” More than 17,000 store closures are forecast this year, the first since 2008.