WH Smith, the iconic high street retailer, may soon vanish from the UK’s shopping streets after its parent company announced plans to sell its 500 UK-based stores. This move casts a shadow of uncertainty over the future of its 5,000 employees and leaves the 232-year-old brand’s presence in flux.
Over the weekend, the publicly listed company confirmed it was actively seeking a buyer for its high street business, a significant shake-up that would allow the company to refocus on its thriving travel retail arm, which has expanded globally with locations in airports and train stations. The sale process, which began late last year, is still in its early stages, with several interested bidders in the mix.
However, the sale is not just about selling physical stores. There are discussions around whether the WH Smith brand itself will continue to be used in the high street market. This means the brand could vanish from the UK’s town centers, continuing only within the more profitable travel sector, which accounts for roughly three-quarters of the company’s £1.9 billion revenue. With 1,300 travel outlets worldwide, the travel segment has been the company’s shining star, making up the lion’s share of its financial success.
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Alteri, a restructuring firm, is reportedly one of the interested parties in bidding for the high street business, though the prospect of this being a turnaround venture raises concerns about job losses and store closures. With approximately 5,000 employees in the high street division, and no union representation, there is a real possibility that staff cuts could be an outcome.
Industry experts, such as Kien Tan, a senior retail adviser at PwC, suggest that WH Smith’s formula for success in airports and train stations may not be viable on the high street anymore. While the high street stores could survive, they would likely need a significant overhaul, introducing new products or services like hospitality to attract customers. Tan speculates that the WH Smith brand may no longer be a good fit for the high street and could be replaced with a completely new name and customer experience.
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This is not the first time WH Smith has attempted to sell off its business. Back in 2004, it nearly struck a deal with private equity firm Permira, but the negotiations fell apart due to an unresolved £250 million pension fund deficit. The current sale efforts signal that WH Smith, once a pillar of the UK high street, may be evolving into something far different from its past.
