WH Smith in 'secret talks' to sell entire high street business of 500 stores

WH Smith is in talks to sell its entire high street business, according to reports. The shopping institution, which was founded in London in 1792, is now in secret talks with a number of prospective buyers, according to Sky News.

There are around 500 WH Smith high street stores in the UK, which employ about 5,000 people across the country. The high street stores are currently part of the same group as its 600 travel stores and the company could confirm its intention to sell its high street arm in a statement to the London Stock Exchange next week, reports the Mirror.

At this time identities of the buyers are unclear but reports of a prospective sale have come after the company confirmed roughly 15 WH Smith shops would be closed this year. WH Smith revealed underlying pre-tax profits of £166m for the year ending August 31, a significant rise from last year's £143m.

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Profits from its shops located in railway stations, airports and hospitals worldwide saw a 15% surge to £189m, with UK-based stores experiencing a fifth of this growth. Despite a 2% drop in like-for-like sales, earnings remained steady at £32m in its traditional high street business due to cost-saving measures.

WH Smith is focusing on expanding its travel shops across North America, with approximately 60 new stores in the pipeline and bids to acquire another 15 in major US airports. The firm also continues to grow its UK travel chain, having opened 14 sites over the past financial year, with plans to open three to eight more in the coming year.

However, it has reduced its UK high street division. The company stated that it has around 470 store leases up for renewal over the next three years, including 100 where active negotiations with landlords are underway.

The firm said: "We only renew a lease where we are confident of delivering economic value over the life of that lease" and added: "As we grow travel, the high street division will become a smaller part of the overall group."