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

Industry experts hint that potential new owners might consider shuttering up to half of WHSmith’s 500 high street stores. Amid exploring strategic options for its profitable high street business, which could involve a sale, WHSmith looks at its future path.

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

In a strategic turn, WHSmith has recently prioritised expansion in its travel division, with locations in busy transport hubs.

The Mirror cites conversations indicating that WHSmith is engaging with several interested parties, including private equity firms Hilco and Alteri, along with Modella Capital, the company behind Hobbycraft, and Doug Putman, current owner of HMV. Insiders conversing with The Guardian suggest that a likely outcome from these negotiations will be the preservation of merely around half of WHSmith’s British shops.

An unnamed insider disclosed to the publication: “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.”

This news comes against the backdrop that approximately 200 WHSmith shops currently incorporate substantial Post Office servicesa key consideration due to early-year reports regarding WHSmith’s plans to shut 17 stores in the upcoming months.

WH Smith has been reshaping its high street presence after shutting its Bournemouth and Luton locations for good on January 18, showcasing an evident shift in strategy since the chain declared it would stop opening new UK high street stores back in June 2023.

November 2024 marked the announcement of 14 more closures. The retailer seems to be indicating that we could see a continuation of this trend into the current financial year.

An update from WH Smith in November indicated a busy time ahead with approximately 470 store leases up for renewal within the next three years. The company is already deep in negotiations for 100 of those leases.

While certain stores are closing, WH Smith’s ambition is clearly focused on enlarging its UK travel division; after inaugurating 14 outlets and bidding farewell to eight last financial year, they aim to net open between three and eight stores this year.

The previous 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.”

Branching out, WH Smith has incorporated Toys R Us concessions into numerous branches, rolling out 37 novel concession stands just before the festive season last year. In a nostalgic move tapping into the vinyl revival, WH Smith is selling records again after a hiatus of more than three decades, available in 80 high street shops.

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