WH Smith PLC (LSE:SMWH) is exploring a sale of its high street business as focus turns to the travel sector, the retailer has confirmed.
“WH Smith confirms that it is exploring potential strategic options for this profitable and cash-generative part of the group, including a possible sale,” a statement said.
Encompassing some 500 shops and around 5,000 staff, WH Smith's high street business appeared over 230 years ago when the first store was opened as a news vendor.
WH Smith added it had become a “focused global travel retailer” over the past decade, leaving it with over 1,200 such stores across 32 countries.
Three-quarters of its revenue and 85% of trading profit came from the travel business, the company said.
High street retailers have come under pressure recently, facing a decline in sales last year as consumer sentiment has also waned.
A string of firms have also flagged a spike in costs ahead on the back of the Budget’s employer national insurance hike and increased minimum wages.
Around 200 of WH Smith’s high street stores also host Post Office counters, with the latter noting it was in contact with the retailer to “to understand [about] plans for their high street stores”.