WHSmith is exploring strategic options for its high street business, including a possible sale, as the retailer focuses on its more profitable travel retail operations. The move raises concerns for the future of 195 Post Office branches located within WHSmith stores and reflects the challenges facing traditional retailers in the face of online competition and rising costs.
The retailer is exploring 'strategic' options for its high street business with 195 Post Office branches in store at riskThe retailer said it was “exploring potential strategic options for this profitable and cash-generative part of the group, including a possible sale”, adding its high street business only accounts for about 15 per cent of its annual trading profit.
It also calls into question the future of 195 Post Office branches that operate out of WHSmith high street shops.WHSmith is one of few retailers that has survived the high street cull but it has not been without criticism. Catherine Shuttleworth, CEO of Savvy Marketing, said: “As shoppers we now behave very differently and that has impacted a number of the key categories that WHSmith operates in.“The consumption of newspapers and magazines is increasingly done online, buying music and entertainment products have long switched to downloads and specialists including online players have hoovered up the greeting card and gifting market.
Meanwhile, the brand’s travel outlets and stores in busy locations, such as hospitals, which are usually in much smaller spaces with better product densities have done very well so it makes “complete strategic sense” to focus on that business and its successful stores overseas. A Post Office spokesperson said: “We are aware of reports regarding WHSmith and are in contact with them to understand more about their plans for their high street stores. We will remain in contact with them after their update to the market on Monday.”Rachel Reeves upped national insurance contributions for employers from 13.8 per cent to 15 per cent, a move that will come into effect this April, in October’s Budget.
Ms Shuttleworth said: “This news is significant for the UK high street. WHSmith has been a permanent fixture for over 200 years, with stores in most towns and cities any change in their ownership may see a number of the stores disappear from the high street completely. This will leave more empty store units in already challenged high street locations.
RETAIL WHSMITH HIGH STREET SALE TRAVEL RETAIL POST OFFICE NATIONAL INSURANCE
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