WH Smith is set to close numerous stores across the UK, impacting local economies and raising concerns about the future of high streets as it shifts focus to its more lucrative travel retail business.
With over 1,100 shops currently operating, WH Smith has announced plans to shut 17 of its high street outlets throughout 2025. The closures come at a time when the retailer is grappling with declining high street sales and increased competition from online shopping. The closures will affect various locations, including notable branches situated in Greater Manchester, such as Bolton and Oldham, alongside closures planned for several other regions.
According to WH Smith, the store at The Malls shopping centre in Basingstoke, Hampshire, will close for the last time on February 1, after over 56 years of service. Additional closures are set to hit branches including those in Accrington and Rhyl, with Basingstoke and Oldham being among the first to feel the impact.
"We are disappointed to be losing our presence in Basingstoke and appreciate the support of our customers and staff during this transition," stated a WH Smith spokesperson. The decision to close was attributed to changing trading conditions and lease expirations.
The closure wave follows recent announcements of the retailer holding talks with private equity firms geared toward selling its high street division. Reports suggest entities like Hilco and Modella Capital are potential suitors. The company's focus on travel outlets—located at airports, train stations, and hospitals—has led to the conclusion of its high street presence becoming increasingly unviable. While high street locations contribute only 15% to the annual trading profit, the travel sector is booming and has been integral to WH Smith's profitability.
Concurrently, WH Smith's high street sales have plummeted by 6% over the key festive season, forcing the retailer to reassess the value of its physical storefronts. Amid this turbulent backdrop, the 500 employees across these closing locations now face considerable uncertainty about their job security.
The drastic measures taken by WH Smith reflect broader challenges within the UK retail sector. Recording 17,349 predicted shop closures by 2025, the Centre for Retail Research detailed similar strategies employed by fashion retailers, supermarkets, and even local pubs. This increasing trend of closures not only threatens traditional retail chains, but contributes to the desolation of many high streets across the country.
Paddy Lillis, the general secretary of Usdaw (the Union of Shop, Distributive and Allied Workers), voiced concerns over the impact on the workforce: "Staff at WH Smith are yet again plunged back under uncertainty and are worried about their futures. This news highlights the urgent need for effective industrial strategies to support the high street." There is anxiety among staff and consumers as they witness the gradual decline of services within their communities.
Analysts have recognized the dire state of WH Smith’s high street business, noting how the retailer has struggled to innovate or modernize its storefronts, which many describe as outdated and insufficient compared to competitors. Several former customers expressed disappointment: "It’s dark and dingy, and the prices are often far too steep," lamented Brian McBride, capturing the sentiments of reluctant customers drawn to cheaper alternatives.
Further complicity arises with the gradual decline of print media, where WH Smith has been regarded as one of the top distributors of books, magazines, and newspapers. Its contraction poses risks for publishers who rely on these sales for profitability. Nick Carroll, from Mintel, pointed out how losing WH Smith would only drive sales to supermarkets and online giants like Amazon, leading to even fewer physical spaces for traditional media.
Future closures could significantly alter shopping dynamics, especially considering WH Smith's foothold as the third largest retailer for magazines and newspapers. Douglas McCabe from Enders Analysis noted the impact of losing such storefronts, emphasizing community needs for print media: "For many, WH Smith is the go-to place for purchasing books once or twice a year. Its absence would complicate access to physical media, particularly outside metropolitan centers."
The pop culture sentiment on high street decline points to broader socio-economic shifts affecting employment and local services. Several commentators have suggested potential paths for revitalizing these stores, such as innovative restructuring or diversifying product lines to attract newer demographics. Yet, WH Smith’s existing model, heavily reliant on conventional product offerings, appears misaligned with current consumer behaviors shifting toward online shopping and budget-oriented outlets.
With the retail environment increasingly competitive, and consumers now more focused on value, WH Smith finds itself compelled to pivot. Without agile responses to these trends, enduring existence outside of travel retail remains uncertain. The final fate of the more than 5,000 jobs hinges on the strategic choices made during this challenging transition period as stakeholders await clearer visions post-sale talks.
WH Smith's future hangs precariously across the storefronts of Britain, leaving communities to ponder what life may look like without the familiar blue-and-white signage, once synonymous with their towns. The urgency of the situation intensifies as they watch the slow erosion of vibrant commercial lives, placing tremendous pressures on the high street and local economies.