Historic high street shopping chain WH Smith is allegedly in “talks” to sell off its stores. According to Sky News the stationer and book store, which first opened in 1792 in a central London property, has been in negotiations with several potential buyers for a number of weeks.
The chain has about 500 shops across Britain. It has been reported it could announce the plan to the London Stock Exchange potentially next week. The firm employs about 5,000 people across the country.
It was reported that bankers at Greenhill have been appointed to run the sale process for the high street business, with a deal expected in the coming months. It is unclear who the potential buyers are at present.
A statement from the firm on Saturday 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.
“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. There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
At present the high street branches form part of the same group’s travel sector which has stores in airports, train stations and hospitals. This sector of the firm has about 600 shops in the UK – and another 600 across other countries.
The firm’s high street division saw an operating profit of £32m. It still predominantly sells cards, magazines, books and stationery. The travel arm has a wider offering of food and drink, and technology products which now accounts for around three quarters of the company’s revenue, and 85% of profits.
Its branches in hospitals are also growing rapidly, with 145 stores in 100 hospitals across the UK. According to its latest results, which were released in November, it is looking at opening in 200 further sites.
The firm opened in 1792 when Henry Walton Smith and his wife Anna launched their news vending store in Little Grosvenor Street, London. After their deaths, the business, valued in 1812 at £1,280 (equivalent to £107,686 in 2023), was taken over by their youngest son William Henry Smith,.
It finally became W.H.Smith & Son in 1846 when his only son, also named William Henry, became a partner. The company opened the first ever travel retail store in Euston station in 1848.