WH Smith high street brand set to disappear after 230 years

WH Smith’s iconic high street presence, a staple of British towns for over two centuries, is nearing its end as the retailer prepares to sell its struggling high street business. The sale, which is being overseen by Greenhill investment bankers, will see the WH Smith name likely phased out, as the chain focuses on its more profitable travel retail division.

Chief Executive Carl Cowling has signalled that managing two separately owned businesses under the same brand would be impractical. Potential new buyers may need to relinquish the WH Smith name, raising concerns over the fate of the retailer’s high street stores. The brand, which launched its first shop in London in 1792, has struggled to adapt to shifting consumer habits, online competition, and rising costs.

The high street arm has been in long-term decline as customers increasingly favour supermarkets, discount shops, and e-commerce platforms. Last year, the business posted a trading profit of £32 million on sales of £452 million, but like-for-like sales dropped by 3 per cent over a recent 21-week period. On the other hand, WH Smith’s travel division has outperformed, contributing 85 per cent of group profits, with its stores located in airports and transport hubs proving far more lucrative.

Interest in the sale has been expressed by firms specialising in distressed assets, including Alteri and Modella Capital, while Canadian entrepreneur Doug Putman, known for saving HMV, has also been cited as a potential bidder. The auction process will likely force the retailer to cease using its historical name under new ownership, a move that has parallels with the historic Rolls-Royce brand split in the 1970s.

Currently, WH Smith operates around 500 high street outlets, with an average lease length of only two years. The short leases mean new owners could opt to shut underperforming stores swiftly, adding to fears of an intensifying decline of British high streets. Notably, nearly 200 WH Smith locations also host post offices, which may face additional disruption.

Retail analysts highlight that while WH Smith’s extensive product range and reputation as a “hub of the high street” have historic significance, its cost-cutting measures in past decades have weakened consumer loyalty. The retailer now faces ever-increasing financial pressures, with national insurance and minimum wage hikes adding £20 million to its cost base this year alone.

While the WH Smith name has been integral in holding the retailer’s diverse product range and business units together, its removal could hinder the brand’s legacy moving forward. Its national significance may remain intact, but the challenges of modern retailing and shifting consumer priorities are reshaping the future of one of Britain’s oldest high street brands.