The iconic WHSmith brand is on the brink of vanishing from British high streets as the company shifts its focus towards its travel outlets in airports and train stations. The retail behemoth has been engaging with various potential purchasers for its 500 high street shops, drawing interest from investment entities such as Alteri and Modella Capital.
Other contenders include Hilco, the former owner of Homebase, and Doug Putman, who owns HMV. However, should a deal be struck, it’s understood that WHSmith believes it cannot sustain two separate entities operating under the same name.
Consequently, this would lead to the rebranding of the high street stores, effectively erasing the familiar name from our urban landscapes. Tracing its roots back to 1792, WHSmith’s inaugural shop was established by Henry Walton Smith and his wife Anna on Little Grosvenor Street in London. The company then pioneered its first travel retail store at London’s Euston station in 1848.
As reported by The Times, a rebranding of the high street stores could “raise concerns that the retail group is seeking to distance itself from any fallout from the sale and prompt questions about the long-term future of many stores.”, reports the Mirror.
Get all the latest money news and budgeting tips from Chronicle Live with our free newsletter
Prospective buyers are expected to be allotted a specific period within which they must transition away from the WHSmith brand name.
The article detailed that WHSmith, with high street stores averaging a mere two-year lease life, could soon see many of its underperforming shops shut down promptly by any incoming proprietor. Nearly 200 of these are also home to Post Office services.
A source with insider knowledge of WHSmith mentioned how the retail chain’s broad spectrum in various product categories and its strategy of being the “hub of the high street” is quite enticing for potential buyers. Meanwhile, industry specialist Richard Hyman from Aria Intelligent Solutions consultancy weighed in with his take, commenting: “WHSmith has a very disparate product offering and the brand name has been the glue that has held it together – without that it’s going to be very difficult [for a new buyer].”
The company unveiled pre-tax profits worth £166million for the fiscal year ending August 31, marking an upward move from last year’s £143m.
Its retail outlets stationed in transit hubs like train stations, airports, and hospitals globally reported a robust 15% increase in profits to £189m, with domestic locales contributing one-fifth of this growth.
Despite a minor dip in like-for-like sales by two percent, the high street segment of its business maintained stable earnings of £32m, buoyed by cost-saving tactics. WHSmith’s growth agenda now includes an ambitious target—expanding its travel shop footprint throughout North America.
With around 60 new stores on the cards and ongoing negotiations to hook another 15 in key US airport locations, the retailer is clearly setting its sights on bigger prospects abroad.
The firm is also expanding its travel chain across the UK, having launched 14 new sites in the previous financial year and targets establishing a further three to eight outlets over the next twelve months. On the flip side, it’s trimmed down its high street presence, shutting down 14 locations which brings the count down to 500 nationwide.
Representative of the company noted that they face approximately 470 store lease renewals across upcoming three years, with active talks already in progress for 100 of these. “We only renew a lease where we are confident of delivering economic value over the life of that lease,” stated the spokesperson from the company.
In addition, WHSmith conveyed: “As we grow travel, the high street division will become a smaller part of the overall group.”
View news Source: https://www.chroniclelive.co.uk/whats-on/shopping/whsmith-high-street-stores-disappear-31110223
