WH Smith, a British retailer, is considering selling its high street stores, according to a statement released on Saturday. Although the company has become a “focused global travel retailer” with more than 1,200 stores across 32 countries, the high street business continues to account for a significant portion of its profits. Over the past decade, WH Smith’s travel retail business has grown to represent more than 85% of its total profits, while the high street business constitutes the remainder.
While WH Smith is known for its high street business, which has been in operation since 1792 and has more than 500 stores, its travel retail business has become the more lucrative arm of the company. Its high street business continues to generate significant profits and the company says it is exploring potential strategic options for this profitable aspect of the business.
The company acknowledges that it faces a challenging climate in which to operate a high street business, given new shopping behaviors. Savvy Marketing’s Catherine Shuttleworth asserts that the focus for companies like WH Smith is now “in shops in high footfall areas like airports, stations and hospitals”. That said, there is still potential for the high street business if potential buyers can “restructure and reimagine WH Smith’s high street presence,” says Nicholas Found of Retail Economics research consultancy.
Despite the potential for reimagining WH Smith’s high street business, the company says that there is “no certainty that any agreement will be reached,” and thus no imminent changes can be guaranteed. The business was valued at £1.5bn at the close of business on Friday
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