WH Smith is reportedly in talks to sell its entire high street business for £1.5billion – more than 233 years after opening its store in London.
The retail group, which is worth nearly £1.5bn, is seeking a buyer for its high street division of 500 stores, employing around 5,000 people across the UK, Sky News reports.
WH Smith, which predominantly sells stationary and books, has reportedly been in secret negotiations with prospective buyers for weeks.
The talks only relate to the group’s high street portfolio, not impacting its string of travel branches at airports, hospitals and train stations. which currently add up to 1,200 worldwide, 600 of which are based in the UK.
The firm’s travel arm has outperformed its high street businesses consistently in recent years and now accounts for 75% of the company’s overall revenue.
“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.
“Over the past decade, WH Smith has become a focused global travel retailer,” it continued.
“The group’s travel business has over 1,200 stores across 32 countries, and three-quarters of the group’s revenue and 85% of its trading profit comes from the travel business.
“There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
W H Smith opened its first store on Little Grosvenor Street in London in 1792, with founder Henry Walton Smith running the branch with his wife Anna before expanding to other venues.
The family business experienced rapid growth in the following centuries and grew its global reach to stores in 28 countries around the world.
However, it hasn’t been all plain sailing in recent history.
The group reported underlying pre-tax profits of £166 million for the year to August 31 – up from £143 million the previous year.
But earnings remained flat at £32 million in its traditional high street business despite a 2% drop in like-for-like sales thanks to cost-saving efforts.
WH Smith previously announced plans to close 17 UK stores in 2025 – although the firm is also expected to open 90 new branches in different locations over the next three years.