WHSmith has confirmed that it is exploring the sale of more than 520 High Street newsstand and bookstores to focus on its travel unit, which now accounts for three-quarters of its revenue and 85% of its trading profit.
The 232-year-old British retailer currently operates more than 580 travel stores across airports, hospitals, railway stations and motorway service areas in the UK, with 1,200 locations total in 32 countries.
“WHSmith confirms that it is exploring potential strategic options for this profitable and cash generative part of the group [the High Street unit], including a possible sale,” said WHSmith in a statement, adding that “there can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
Retail Media Presents Expanded Opportunity for WHSmith’s Travel Business
It’s certainly no coincidence that the news comes just a week after WHSmith announced that the U.S. segment of its travel division was launching into another highly lucrative business — retail media. WHSmith North America (WHSNA) is partnering with SMG to create a travel-focused in-store retail media network aimed at connecting brands with shoppers via advertising across its 347 airport, rail station and resort-based stores in the U.S. and Canada.
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While travel retail and retail media are both growing strongly around the globe, pressure on UK High Street retailers is mounting, driven by a range of domestic policy changes that have added to costs in the form of minimum wage hikes and higher National Insurance payroll taxes.
