Members of the public walk into a branch of WH Smith PLC in Orpington on January 23, 2025 in London, England.
Dan Keywood | Getty Images News | Getty Images
British retail stores WH Smith It is looking to sell its historic high street business to focus on its travel store unit in the latest blow to the UK retail industry.
The 232-year-old retailer said on Monday it was exploring the sale of its more than 520 High Street stores, which sell newspapers, books and stationery, confirming reports over the weekend that talks were underway.
“WHSMITH confirms that it is exploring potential strategic options for this profitable and cash generating portion of the group, including a potential sale,” the company said in a statement on the London Stock Exchange website.
He added: “There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
WH Smith – part of the FTSE 250 – has doubled on its UK travel unit over recent years, with more than 580 travel stores across airports, hospitals, railway stations and motorway service areas. Its broader global travel business totals 1,200 stores in 32 countries, which the company said now represents three-quarters of its collective revenue and 85% of its business profits.
Investec's Kate Calvert said in a note Monday that the plans are “not a surprise” given the group's investment in Her travel operations. In comments emailed to CNBC, Calvert added that WH Smith investors should be moved by the move.
“You own WH SMITH's travel business. Travel is a long-term structural growth market. If you take away the high street, it should get a higher valuation over time,” Calvert, head of retail and consumer research at Investec, told CNBC via email.
WH Smith shares rose about 5.5% after the announcement on Monday, after falling about 11% in 2024. They were last trading 2.9% higher.
The move comes as pressure on the UK retail industry mounts in the UK amid the continued growth of e-commerce.
Local policy changes added to UK business costswith the government in October Advertisement Increases to the UK minimum hourly wage and National Insurance (NI) Payroll tax paid by employers.
High street supermarket chain Sainsbury's It announced on Thursday that it plans to cut 3,000 jobs in the UK, and it follows warnings earlier this month from major retailers who warned they would be forced to cut thousands of jobs this year to cover the cost of higher taxes, according to a… reconnaissance By the British Retail Consortium.
“The retail sector has seen unprecedented OPEX (operating spending) inflation in recent years from increases in the national minimum wage and rates,” Calvert said.
She added: “Government increases in NMW & NI (National Minimum Wage and National Insurance) are a huge headwind and not very helpful. Retailers will need to close unprofitable stores.”
