The iconic WH Smith brand is expected to disappear from British high streets as the company moves forward with plans to sell its struggling high street stores—without the rights to its name.
The retailer, which has been a familiar presence since 1792, has been in discussions for weeks about offloading its 500 high street branches, nearly 200 of which include post offices. The move is part of a strategic shift to focus on its more profitable travel sector, which includes shops in airports, train stations, and hospitals.
Chief Executive Carl Cowling is reportedly keen to avoid having two separate businesses operating under the same name, meaning that any new owner of the high street stores would need to rebrand. Investment firms Alteri and Modella Capital, which specialise in reviving struggling retailers, are among the interested buyers, as well as Canadian businessman Doug Putman, known for rescuing HMV, and Hilco, a previous owner of Homebase.
The sale, managed by Greenhill investment bank, includes a stipulation that the new owner must eventually relinquish the WH Smith name. Though there is an outside chance a deal could be made to retain the branding, this is considered unlikely.
WH Smith’s high street business has seen a decline in sales over the past decade, falling from £684 million to £452 million. In contrast, its travel division—comprising around 1,200 stores worldwide—now generates 85% of the company’s profits. With many high street stores operating on short-term leases, there are concerns that a new owner may shut down underperforming locations.
Retail analyst Richard Hyman has warned that without the WH Smith name, the stores could struggle to establish a strong new brand identity, given their wide-ranging product selection. Meanwhile, rising costs, including increased minimum wages and national insurance contributions, are expected to add £20 million to the business’s expenses.
With a total market value of nearly £1.5 billion, WH Smith remains a significant player in the retail sector. Its travel division continues to perform strongly, with profits rising 15% to £189 million in the past year, a fifth of which came from UK-based travel stores. However, the future of its high street presence remains uncertain as the sale process moves forward.
The retailer, which has been a familiar presence since 1792, has been in discussions for weeks about offloading its 500 high street branches, nearly 200 of which include post offices. The move is part of a strategic shift to focus on its more profitable travel sector, which includes shops in airports, train stations, and hospitals.
Chief Executive Carl Cowling is reportedly keen to avoid having two separate businesses operating under the same name, meaning that any new owner of the high street stores would need to rebrand. Investment firms Alteri and Modella Capital, which specialise in reviving struggling retailers, are among the interested buyers, as well as Canadian businessman Doug Putman, known for rescuing HMV, and Hilco, a previous owner of Homebase.
The sale, managed by Greenhill investment bank, includes a stipulation that the new owner must eventually relinquish the WH Smith name. Though there is an outside chance a deal could be made to retain the branding, this is considered unlikely.
WH Smith’s high street business has seen a decline in sales over the past decade, falling from £684 million to £452 million. In contrast, its travel division—comprising around 1,200 stores worldwide—now generates 85% of the company’s profits. With many high street stores operating on short-term leases, there are concerns that a new owner may shut down underperforming locations.
Retail analyst Richard Hyman has warned that without the WH Smith name, the stores could struggle to establish a strong new brand identity, given their wide-ranging product selection. Meanwhile, rising costs, including increased minimum wages and national insurance contributions, are expected to add £20 million to the business’s expenses.
With a total market value of nearly £1.5 billion, WH Smith remains a significant player in the retail sector. Its travel division continues to perform strongly, with profits rising 15% to £189 million in the past year, a fifth of which came from UK-based travel stores. However, the future of its high street presence remains uncertain as the sale process moves forward.
