WHSmith looking for a buyer for its UK high street business
WHSmith has confirmed that it is looking to sell its High Street stores to complete its strategic shift to being a global travel retailer.
The group generates £452m sales from its UK high street stores, around one-quarter of its £1.9bn annual revenue.
It has 500 stores as well as online businesses under the company brand, funkypigeon.com and cultpens.com.
However its North American travel business on its own is a comparable size to its UK high street operations, with £400m sales and has previously been described by the group as having “significant potential for growth”.
In a statement to the stock market this morning, the company said: “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.”
It acknowledged “there can be no certainty that any agreement will be reached”.
Investment bank Greenhill is leading on the sale.
Swindon-headquartered WHSmith opened its store in London in 1792 and its first travel store at Euston station around 50 years later. The group now employs 14,000 people in 32 countries.
