WH Smith High Street sales fall amid talks to sell stores

British retailer WH Smith recently announced a decline in sales on its UK high streets, while reports indicate the company is considering selling its 500 UK stores. In the 21 weeks leading up to January 25, which included the crucial Christmas sales period, its high street sales fell by 6% year-on-year, a drop from the 3% decrease the previous year.

The company had previously planned to close 17 UK stores in 2025, having already closed 14 in the last fiscal year. Despite the challenges faced by its high street business, WH Smith's travel business is performing strongly, with the company stating its travel division "delivered another excellent performance" and planning expansion in the US.

Group Chief Executive Carl Cowling stated, "The Group is in a strong position and, despite some economic uncertainty, we are confident of another year of good growth in 2025." The 233-year-old British company confirmed it had held talks over the weekend about a potential sale of its high street stores, which employ around 5,000 staff, to focus on its travel retail business operating in airports, railway stations, and hospitals.

The company told the BBC that if the sale of the high street business goes ahead, the post offices within 195 of its stores will be retained. Currently, WH Smith’s travel retail business accounts for over 85% of its profits and operates 1,200 stores in 32 countries. The company stated in its latest trading update that it plans to open more stores in US airports. "In North America, like-for-like revenues have grown significantly, up 3%, due to our actions to enhance the product range and introduce new categories," Mr. Cowling said.

He announced that the retailer had "won" contracts to open 8 stores at Orlando Airport in Florida, as well as 4 stores at Portland Airport in Oregon, with plans to open a total of 60 stores in the US. Back in the UK, the retailer said its Christmas trading period was on track to deliver its full-year £11 million cost-saving target. Analysts predict its high street business could be sold for £100 million or more in the coming months, with reports suggesting private equity bidders are eyeing a deal to take control of the retailer's stores.