WHSmith brand is all set to disappear from the UK’s high streets as the retailer reportedly plans a sale of the chain without the rights to its brand name.
The brand, which has been in the British towns for more than 230 years is in the process of divesting its struggling high street business to concentrate on its rapidly expanding travel sector, reports The Times.
The high street name opened its first shop way back in 1792 in central London.
The popular retailer has plans to shut down 10 high street stores in the coming months, following the closure of multiple branches earlier this year.
According to the latest report, the retail giant has been in talks with a large number of potential buyers regarding the sale of its high-street stores.
The auction, managed by Greenhill bankers, has attracted interest from investment firms Alteri and Modella Capital, both of which specialise in acquiring and restructuring struggling retailers.
The retailer’s 500 high-street stores have an average lease term of only two years, increasing the likelihood that a new owner could swiftly close underperforming locations.
A source close to WH Smith told The Times that bidders were attracted to the retailer because of its strength across multiple product categories and its clear “hub of the high street” strategy.
The company is shifting its focus to its more profitable travel division, which operates in airports, train stations, and service areas.
Despite these closures, WHSmith is focusing on expanding its presence in travel hubs such as airports, railway stations, and hospitals, where it has seen stronger revenue growth.
The retailer has invested over £100 million in airport stores and aims to open 110 new locations this year.
WHSmith’s high street stores reported sales of £452 million in the year leading up to August.
Despite this revenue, the trading profit (profit from day-to-day operations before major expenses like taxes and interest) was only £32 million—a relatively low margin.
Over a more recent period (the 21 weeks leading up to January 25), like-for-like sales (which exclude the impact of new store openings or closures) fell by 3 percent, indicating a decline in customer demand for high street locations.
