‘Focused global travel retailer’ WHSmith is considering the sale of its UK High Street business, which spans around 500 stores. Credit: WHSmith PLC.

WHSmith has given a strong indication it is considering selling its High Street business to focus on travel retail.

In a statement responding to widespread press speculation in recent days, the news, books and convenience retailer confirmed 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,” read a statement. “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.”

Travel leading the business

First reporting the development on Saturday (25 January), Sky News claims the company has been in negotiations with ‘a number of prospective buyers’ for the High Street business for ‘several weeks’ and that the company will reveal a plan to the London Stock Exchange on Monday.

Outside the UK High Street, WHSmith’s international business counts more than 580 UK Travel units and in excess of 640 units across its North America and Rest of the World businesses, primarily focused on airports.

The company had previously announced a pipeline of more than 90 new store openings across its Travel division, including around 60 in North America.

In results announced in November, revenue for the Group’s total Travel business grew 11% in the 12 months ending 31 August 2024 to £1,466 million with trading profit up 15% to £189m.

In the 12 months ending 31 August 2024, total Travel trading profit was £189m compared with the £32m return from the High Street business. Source: WHSmith Plc.

Travel UK, which covers shops at airports, hospitals and railways, accounted for the largest share of divisional revenue at £795m (£709m: 2023) and generated trading profit of £122m (£102m: 2023).

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