WHSmith, the iconic British retailer, is undergoing significant changes as it pivots away from its traditional high street presence. The company, known for its extensive range of books and stationery, has announced plans to explore the sale of its 500 bricks-and-mortar stores, including 17 closures set for this year. This decision has stirred concerns about the retail giant's future on the high street, particularly after it shut down its much-loved store on Old Christchurch Road in Bournemouth last month.
Effective February 15, several more locations, including branches in Basingstoke and Rhyl, will cease operations, with additional closures scheduled as late as May 2025. The move highlights the shift from physical storefronts to more profitable avenues, namely the travel sector, which has gained traction as consumer habits evolve.
According to WHSmith, their travel division now accounts for 85% of profits, with operations spanning across 32 countries, including major economies like India, North America, and Australia. A spokesperson for the company emphasized, "The transformation of our UK travel business from a news, books and convenience retailer to a one-stop-shop for travel essentials is progressing very well." This shift reflects broader trends within the retail sector, where many established brands are grappling with changing shopping behaviors.
Recent stats show the clay of the high street — with 13,479 retail closures reported across the UK just last year, marking a hefty 28% increase from 2023. Each day saw approximately 37 stores shutting their doors, as the industry faced not only the rise of online shopping but also logistical challenges such as increased operational costs stemming from higher National Insurance contributions and the increased minimum wage.
Linda Ellett, Head of Consumer, Retail and Leisure at KPMG UK, pointed out these economic factors are compelling retailers to assess their locations more critically. She remarked, "Firms are increasingly scrutineering where best to be located and the implications of rising employment costs. For some, it is more preferable to position themselves within train stations and airports rather than traditional high streets." This sentiment echoes across the retail sector, with high streets facing unprecedented challenges.
Chris Flint of Miller Knight summarized how the high street must adapt: "We are now witnessing a renewed focus on urban living, driven by the demand of convenience, sustainability, and vibrant communities. With the decline of traditional retail, high streets are blending residential, hospitality, and culture to cater to broader audience interests." It is evident the high street is not just about shopping anymore; it needs to morph to survive.
Similarly, the high street remains pivotal for community interaction amid the retail transformation. Jessica Nesbitt, Chief Growth Officer at Not On The High Street, emphasized the importance of these spaces: "The high street remains a vitally important space for communities, offering social connection and local engagement." Brands supportive of this concept are thriving, as consumers lean toward eco-friendly and locally-sourced products. Shoppers are becoming increasingly discerning, opting for stores and brands making credible commitments to sustainability.
The story of WHSmith reflects larger industry trends underscoring the need for traditional retailers to evolve or risk fading from public consciousness. With the digital age reshaping the way we shop, businesses must strike the right balance between maintaining physical presence and leveraging online platforms.
Amid the uncertainties, WHSmith's explorative discussions about potential sales could lead to significant shifts by extending their travel-centric reach. While no definite agreements exist, the intent signals to the market of the brand's commitment to adapting and hopefully thriving under new circumstances.
For communities relying on traditional retail, the continued wave of closures signifies growing disparities where once-bustling shopping streets may soon become relics of the past. The future of the high street is increasingly uncertain, yet through adaptation and sustainable practices, there may still be hope for local economies.
Today marks not just another day of operational changes for WHSmith but also the tip of the iceberg concerning the future of retail on UK high streets, capturing the struggle of many retailers aiming for survival against the tide of digitalization.