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Speculation is rife within the industry that a potential new owner might close up to half of WHSmith’s 500 high street stores. The well-known books and stationery chain has announced it is exploring strategic options for its profitable high street business, which could involve divesting these outlets.
Do you worry for the future of the Post Office as WH Smith looks to close shops? Join in the conversation.
WHSmith has increasingly been focusing on its travel division, which includes shops located in airports and train stations.
According to reports, WHSmith is currently in talks with private equity firms Hilco and Alteri, Modella Capital, the owner of Hobbycraft, and Doug Putman, who owns HMV. Yet, insiders speaking to The Guardian suggest that any new owner would likely retain only around half of the retailer’s UK shops, as reported by the Mirror.
An anonymous insider was quoted by the newspaper saying: “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.”
Presently, approximately 200 WHSmith stores have a significant Post Office presence. This development comes after January reports indicated that WHSmith plans to shut down 17 stores in the coming months.
WHSmith, the well-known high street retailer, has embarked on a period of significant transformation, starting with the permanent closure of their Bournemouth and Luton high street stores on January 18. This decision aligns with the company’s June 2023 stance where they announced no plans to launch new UK high street branches.
The trend of downsizing continued into November 2024 with confirmation of 14 additional store closures, and suggestions point towards a similar pattern for the ongoing financial year.
In a recent update last November, WHSmith disclosed that approximately 470 store leases are set for renewal in the next three years, with negotiations already underway for 100 of these premises. Despite the shutdowns, the company remains focused on expanding its UK travel division, having opened 14 new outlets and closed eight the year before, and is planning to open between three and eight new stores this year.
Last year, a spokesperson for WHSmith commented: “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.”
Innovating its product range, WH Smith welcomed Toys R Us concessions into a number of its stores, including the introduction of 37 new ones just before last Christmas. Further diversifying, they have marked a notable return to selling vinyl records after a hiatus of over three decades by stocking them in 80 high street stores once again.
Do you worry for the future of the Post Office as WH Smith looks to close shops? Join in the conversation.
