Do you worry for the future of the Post Office as WH Smith looks to close shops?

Industry insiders have hinted that a potential new owner might close up to half of WHSmith’s 500 high street stores. The well-known books and stationery retailer has announced it is exploring different strategic options for its profitable and cash-generative high street business, which could involve offloading these branches.

Do you worry for the future of the Post Office as WH Smith looks to close shops? Join in the conversation.

In recent years, WHSmith has shifted its focus towards its travel division, which includes outlets in airports and train stations.

Reports suggest that WHSmith is in talks with private equity firms Hilco and Alteri, Modella Capitalthe owner of Hobbycraft, and Doug Putman, who owns HMV. However, experts speaking to The Guardian believe any prospective buyer is likely to retain only around half of the retailer’s UK shops, according to the Mirror.

An anonymous source informed the newspaper: “I can’t see anybody who would want to run 500 locations of anything on the high street. Some sites are brilliant, but some clearly aren’t.”

Currently, approximately 200 WHSmith stores feature a significant Post Office presence. This comes after reports in January that WHSmith intends to shut down 17 stores in the coming months.

WH Smith has been making headlines with significant operational changes, starting on January 18 when they shuttered their Bournemouth and Luton high street stores for good. This followed the retailer’s announcement in June 2023 that it had no plans to open new UK high street branches.

Come November 2024, WH Smith confirmed the closure of an additional 14 stores, suggesting a continuation of this trend into the current financial year.

In a November update, WH Smith disclosed that around 470 store leases are up for renewal over the next three years, with negotiations already underway for 100 of these. Despite shutting some shops, WH Smith is keen to expand its UK travel division, having opened 14 locations and closed eight in the last financial year, and aims to open between three and eight net new stores this year.

Last year, WH Smith declared: “As we grow travel, the high street division will become a smaller part of the overall group. We only renew a lease where we are confident of delivering economic value over the life of that lease.”

In a bid to diversify, WH Smith has rolled out Toys R Us concessions in numerous outlets, including 37 new ones launched before last Christmas. Marking a significant comeback to vinyl, they’ve also started selling records again after more than three decades in 80 high street stores.

Do you worry for the future of the Post Office as WH Smith looks to close shops? Join in the conversation.