WH Smith has confirmed it is seeking a buyer for its high-street stores, which could put staff in its 500 shops at risk of redundancy.
The retailer plans to focus on its successful travel branches in airports, railway stations and hospitals, which currently generate around three-quarters of its £1.9bn annual revenue and 85% of its trading profit.
High-street staff account for around 5,000 of its 13,870 workforce. There has been speculation that a number of restructuring and turnaround companies are interested in taking on the stores, but WH Smith is yet to confirm.
The travel business now has more than 1,200 stores across 32 countries. Its high street business has been impacted by a change in consumer habits, with most people now reading news online or downloading books rather than buying physical copies.
Revenue for the high street stores dropped by £17 million in 2024, according to its last set of financial figures.
In a statement, the company said: “WH Smith confirms that it is exploring potential strategic options for this profitable and cash-generative part of the group, including a possible sale.
“Over the past decade, WH Smith has become a focused global travel retailer.
“There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
The latest growth indicator survey from the CBI suggests that WH Smith may not be the only company considering a reduction in headcount.
The business lobby found that the majority of employers in its poll expect prices to go up this year and hiring intentions to remain weak, thanks to increased costs from higher employer national insurance contributions and a hike in the national living wage.
This follows S&P’s flash purchasing managers’ survey last week, which showed that UK businesses are cutting jobs at the fastest pace since the 2008-09 financial crisis, excluding the pandemic.
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