WHSmith, a staple of the UK’s high streets since 1792, is undergoing significant changes as it shifts focus towards its more profitable travel outlets. This strategic pivot has led to the closure of several high street stores, with more planned in the coming months.
Recent and Upcoming Store Closures
As of February 1, 2025, WHSmith has closed its Basingstoke branch in Hampshire. This closure follows the shuttering of locations in Bournemouth and Luton in January. The company has announced plans to close additional stores, including those in Newtown (Powys), Winton (Bournemouth), and Rhyl (Denbighshire) on February 15. Further closures are scheduled in Bolton (Greater Manchester) later in February, Accrington (Lancashire) on March 15, and several others in April and May. In total, 17 stores are set to close by May 2025.
Strategic Shift Towards Travel Retail
WHSmith’s decision to reduce its high street presence aligns with its strategy to concentrate on travel retail, which has become increasingly lucrative. The company’s travel division, encompassing outlets in airports, train stations, and service areas, accounts for approximately 85% of its profits. This focus has been bolstered by a resurgence in travel post-pandemic, leading to higher footfall in these locations.
Potential Sale of High Street Stores
In light of these developments, WHSmith is reportedly exploring the sale of its high street division, which comprises around 500 stores. Potential buyers include investment firms like Alteri and Hilco and retail groups like the Frasers Group. The sale could fetch between £100 million to £130 million, though discussions are ongoing, and no definitive agreement has been reached.
Impact on Communities and Postal Services
The closure of WHSmith stores has raised concerns about the potential loss of essential services in affected communities. Approximately 200 post offices operate within WHSmith locations, and their closure could create “postal deserts,” leaving residents without convenient access to postal services. The Communication Workers Union has expressed apprehension over these developments, emphasizing the negative impact on employees and the public.
Public Reaction and Future Outlook
Public response to the closures has been mixed. Some shoppers lament the loss of a familiar retailer, while others criticize the stores for outdated appearances and high prices. Industry experts suggest revitalizing the brand to attract younger consumers, potentially incorporating elements like entertainment zones and cafes, could be beneficial. As WHSmith navigates this transition, the retail landscape continues evolving, reflecting broader consumer behavior and economic pressure shifts.
In conclusion, WHSmith’s strategic move to focus on travel retail marks a significant shift in its business model. While this may enhance profitability, it also underscores the challenges faced by traditional high-street retailers in adapting to changing market dynamics.
