WH Smith Considers Abandoning High Street After 230 Years

After 230 years of serving customers on the high street, WH Smith is considering a significant shift in its retail strategy. The stationery and book retailer, which has been a staple of British high streets since 1792, is now contemplating a move away from traditional high street stores in favor of travel hubs and potentially online retail. This strategic shift, driven by changing consumer behavior and higher profit margins in travel hubs, could have significant implications for the company's workforce and the broader retail industry.

WH Smith's decision to focus on travel hubs comes as no surprise, given the strong growth in its travel divisions. In the 20-week trading period update to 20 January 2024, the company's revenue was up 8% compared to the prior year, with strong performances across its global travel divisions. Travel UK revenue grew by 36%, North America by 32%, and the Rest of the World by 99%. In contrast, high street revenue fell by 1% during the same period. This trend is expected to continue as WH Smith executes its growth strategy in travel hubs and potentially online retail.

The company's expansion into travel hubs is part of a broader trend in the retail industry, as consumers increasingly shop for convenience and immediacy. Travel hubs, such as airports and railway stations, offer higher profit margins and growth opportunities for retailers like WH Smith. The company has already opened its largest UK Travel store at Birmingham Airport, a one-stop-shop for travel essentials, and has received positive feedback from both landlords and customers.



However, the shift towards travel hubs and away from the high street could have significant implications for WH Smith's workforce. The closure of 17 high street stores in 2025, along with the previously announced closures in 2024, could lead to job losses and a reduction in available jobs in the affected areas. On the other hand, the expansion into travel hubs and the opening of new stores could create new job opportunities. For example, the opening of 110 new branches in airports, railway stations, and hospitals could lead to the creation of hundreds of new jobs.

In conclusion, WH Smith's strategic shift towards travel hubs and away from the high street is a response to changing consumer behavior and the potential for higher profit margins in travel hubs. While this shift could have significant implications for the company's workforce and the broader retail industry, it is a necessary move for WH Smith to remain competitive in the rapidly evolving retail landscape. As the company continues to execute its growth strategy in travel hubs and potentially online retail, it is well-positioned to capitalize on the growing demand for convenience and immediacy in the retail sector.