New WH Smith owner ‘could close’ half of high street stores, experts warn
The group is expected to receive offers from potential buyers of as much as £100m in the coming weeks, with a deal to be completed by early May
Any potential new WH Smith owner could close at least half of the retailer’s 500 high street stores if they take over the business, The Guardian has reported.
It comes as industry experts told the outlet that they could see a reduction in the size of the business after any deal with one suggesting it would likely total no more than 250 stores.
It is understood that WH Smith is looking to sell its high street arm to focus on its expanding travel business, which is currently opening outlets overseas as well as in UK stations, airports and hospitals.
The Guardian said the group is expected to receive offers from potential buyers of as much as £100m in the coming weeks, with a deal to be completed by early May.
WH Smith’s assets include the Richard and Judy Bookclub brand, 200 sites with a large post office, and the rights to distribute Toys R Us products in the UK.
However, Jonathan Pritchard, a retail analyst at investment bank Peel Hunt, told The Guardian the “risk was on the downside” of that £100m sum, with the business likely to be making profits of less than £16m once central costs and profits from the online business Funky Pigeon – which will not be part of the sale – were taken into account.
WH Smith closed 14 stores in 2024 and the group has a further 17 planned this year.
Last month, the retailer confirmed it is exploring the potential sale of its high street stores as it looks to restructure the business, which has seen its Travel business continue to outperform high street outlets in recent years.
Sky News reported that the retailer has been in negotiations with a number of prospective buyers for several weeks.
WH Smith has been approached for comment.
