On January 23, 2025, in London, England, people walked past a branch of WH Smith Plc in Orpington.
Dan Kitwood | Getty Images News | Getty Images
British retailer WH Smith is seeking to sell its historic high street business to focus on its travel stores division, the latest blow to the UK retail industry.
The 232-year-old retailer said on Monday it was considering selling more than 520 high street stores, which sell newspapers, books and stationery, confirming reports over the weekend that talks were ongoing.
“WHSmith confirms that it is exploring potential strategic options, including a possible sale, for this profitable and cash-generating part of the group,” the company said in a statement on the London Stock Exchange website.
It added: “There is no certainty that any agreement will be reached and a further update will be provided in due course.”
WH Smith, part of the FTSE 250, has been doubling down on investment in its UK travel arm in recent years, with more than 580 travel shops in airports, hospitals, train stations and motorway service areas. Its wider global travel business, which has 1,200 stores in 32 countries, now accounts for three-quarters of group revenue and 85% of trading profits, the company said.
Investec’s Kate Calvert said in a note on Monday that the plans were “not surprising” given the group’s investment exist its tourism business. Calvert added in emailed comments to CNBC that WH Smith investors should be encouraged by the move.
Calvert, head of retail and consumer research at Investec, said: “You have WH Smith’s travel business. Travel is an attractive long-term structural growth market. If you dispose of High Street, you should get higher gains over time. valuation rating.
Shares in WH Smith rose around 5.5% following the announcement on Monday, having fallen nearly 11% in 2024 and last traded 2.9% higher.
The move comes as the UK high street retail sector comes under increasing pressure as e-commerce continues to grow.
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“The retail industry has experienced unprecedented operating expense inflation in recent years due to increases in the national minimum wage and interest rates,” Calvert said.
“Government increases in NMW and NI (National Minimum Wage and National Insurance) are a huge headwind and very unhelpful. Retailers will need to close unprofitable stores,” she added.
