Local Hampshire WHSmith branches face uncertain future as company explores possible sale of 500 UK street stores

WHSmith has been around for 230 years, however over the weekend, it confirmed that it was exploring the possible sale of its high street branches. The company has around 500 stores in its high street arm, including shops in Southsea, Waterlooville, Gosport, Fareham, Havant, and Whiteley.

The move comes as the business looks to focus on the travel sector with shops in airports, train stations and hospitals proving more profitable.

A statement read: “WHSmith 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, WHSmith has become a focused global travel retailer.

“The group’s travel business has over 1,200 stores across 32 countries, and three-quarters of the group’s revenue and 85% of its trading profit comes from the travel business.”

While it has been confirmed they are exploring a possible sale, it has not yet been confirmed that it will proceed, with the statement going on to say: “There can be no certainty that any agreement will be reached and further updates will be provided as and when appropriate.”

It has proven to be a turbulent start to the year for the historic company’s high street branches, with 17 announced to be closing in the coming months. While no stores in the area were affected, shops in Basingstoke and the Isle of Wight were included.

At the end of last year, branches in Havant and Fareham were given a boost when Toys R Us opened up in-store, making them one of 39 locations to house the popular toy chain.

While scenarios remain hypothetical at this time there has been concern regarding what would happen to the Post Office’s housed in WHSmith’s stores across the UK. With private equity groups interested in the purchase there is also potential concern for workers if they were to close branches following the purchase.

It is understood private equity groups Hilco and Alteri are among parties to raise interest over a possible takeover move for the business, with both having experience in UK retail as turn around specialist.

Peel Hunt analyst, Jonathan Pritchard, told the Press Association that branch closures would be an option with WHSmith’s high street arm already streamlined. He said: “It is hardly as though this is a fat business, with lots of inefficient processes and store staff dossing about. Quite the opposite.

"Store closures could be material in somebody else's hands, but WH Smith itself, clearly, has a good line of site on how to get the most out of the chain, and it is unlikely that anyone else has the silver bullet to regalvanise profitability here."

Mr Pritchard went on to predict that the company could sell the high street arm for between £100 million and £130 million based on recent earnings.

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