WH Smith pursuing sale of high street business
WH Smith is in talks to sell its high street arm, as the £1.5bn company looks to focus entirely on its travel retail business.
The company’s high street operation is made up of about 500 stores, employing around 5,000 people.
“WH Smith confirms that it is exploring potential strategic options for this profitable and cash generative part of the group, including a possible sale,” a statement from WH Smith said.
The story was first reported by Sky News’ Mark Kleinman, which stated that bankers at Greenhill had been appointed to run the sale process for the high street business.
Throughout the last decade, WH Smith has focused almost entirely on its travel retail business which operates in airports, train stations and hospitals.
With the travel retail business increasingly profitable , the high street business now accounts for just 15 per cent of WH Smith’s profit annually.
“Over the past decade, WH Smith has become a focused global travel retailer,” the statement added.
“The group’s travel business has over 1,200 stores across 32 countries, and three-quarters of the group’s revenue and 85 per cent of its trading profit comes from the travel business.
“There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
WH Smith’s revenue rose seven per cent to £1.9bn in the year ended 31 August, 2024, driven by growth in travel shops plus the company’s expansion into North America.
The firm’s pre-tax profit rose 16 per cent to £166m, from £143m in 2023, with all profit growth last year due to trading at travel locations.
Total travel trading profit was up 13 per cent to £189m, while high street profit was flat at £32m.
In November, the group said it had a pipeline of 90 travel stores, two thirds of which are in the US. It expects to open 40 stores this financial year.
“Over recent years, there has been a growing wedge between its traditional high street operations and its thriving travel retail division,” said Nicholas Found, head of commercial content at Retail Economics.
“The move reflects broader structural issues facing legacy high street retailers, with many grappling to find relevance in a digital-first era, amid mounting cost pressures from announcements made in the Budget.”