London-listed retailer WH Smith Plc is exploring options, including a potential sale, for its high street unit, which includes more than 500 stores in the UK. The high street business now accounts for only about 15% of annual group trading profit. “WH Smith confirms that it is exploring potential strategic options for this profitable and cash generative part of the group, including a possible sale,” an official statement said. Over the past decade, the firm has focused on its more fruitful, travel retail business which operates from airports, train stations and hospitals.WH Smith has appointed bankers at Greenhill to run the sale process for the unit, according to Sky News, which didn’t identify any potential buyers. “Over the past decade, WH Smith has become a focused global travel retailer,” an official statement said. A sale would allow WH Smith to focus on its travel retail business. That segment represents three quarters of the group’s revenue and 85% of its trading profit, according to Saturday’s statement. The group’s travel business has over 1,200 stores across 32 countries, and three-quarters of the group’s revenue comes from the travel business.WH Smith’s high street division sells products such as books, newspapers, magazines and stationery, while the travel retail business also offers food and electronics. The company opened its first store in London 230 years ago – in 1792. The group reported underlying pre-tax profits of £166 million for the year to August 31 – up from £143 million the previous year. But earnings remained flat at £32 million in its traditional high street business despite a 2% drop in like-for-like sales thanks to cost-saving efforts.(With inputs from Reuters and other agencies)
WH Smith is contemplating the sale of its high street business as it shifts its focus toward travel retail.
