WH Smith in talks to sell high street arm
The first WH Smith store opened 230 years ago.
WH Smith is in talks to sell its high street arm.
The company’s hight street operation is made up of about 500 stores, the first of which was opened 230 years ago.
“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 said.
Over the past decade, the firm has focused on its more fruitful, travel retail business which operates from airports, train stations and hospitals.
The high street business now accounts for only about 15% of annual group trading profit.
“Over the past decade, WH Smith has become a focused global travel retailer,” the statement continued.
“The group’s travel business has over 1,200 stores across 32 countries, and three-quarters of the group’s revenue and 85% 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.”
The group reported underlying pre-tax profits of £166 million for the year to August 31 – up from £143 million the previous year.
But earnings remained flat at £32 million in its traditional high street business despite a 2% drop in like-for-like sales thanks to cost-saving efforts.