WH Smith’s Shift in Strategy: Rewriting the Future of British Retail

WH Smith, a name that has long been linked to the rhythm of British high streets, is going through a quiet change that means more than just a strategic tweak. It suggests a bigger rethinking of where, how, and why it wants to grow. The store is known for always being there to sell books, newspapers, stationery, and travel necessities. Now, it is looking into the possibility of selling its high street business so it can focus more on its high-performing travel retail businesses.

This move shows that the company is intentionally moving toward places with a lot of foot traffic, steady demand, and better profit margins. This is a great example of how legacy brands adapt to changing business conditions for people who study how retail has changed over time.

Elevating Priorities: From High Streets to Travel Hubs

In the last few years, WH Smith has opened more stores in airports, train stations, and other places where people travel. These travel environments, full of people who are aware of time and make impulse buys, have given the company a great way to grow quickly and make money.

Recent trading updates support this trend. From the end of 2021 to the beginning of 2025, WH Smith saw a 7% rise in travel revenue. This performance is better than the slower, more stable growth rates seen in most traditional high street stores. This difference is what now shapes the company’s strategic path.

Reassessing the High Street Business

In January 2025, WH Smith said it was looking into its high street business, which includes more than 500 stores and employs about 5,000 people. This division is still making money and bringing in steady cash flow, but it is no longer the main way the company is growing.

The business is thinking about its options, which include selling the whole thing, selling part of it, or restructuring the way it works. The goal is to put more money and management resources into travel retail, which always does better in terms of foot traffic, average spend per transaction, and chances for global growth.

Buyers Circle as WH Smith Considers a Sale

The announcement has drawn interest from private equity players known for their investments in retail assets. Two prominent contenders include:

• Modella Capital: An investment firm with a track record of acquiring underleveraged high street chains, including its recent purchase of The Original Factory Shop.
• Alteri Investors: Supported by Apollo Global Management, which has a history of pursuing turnarounds in distressed but viable retail operations.

These firms are likely attracted by the stability of WH Smith’s high street cash flows, combined with the potential to reconfigure store portfolios for modern consumer expectations.

---

Voted "Best Overall Budgeting App" by Forbes and WSJ

Monarch Money helps you budget, track spending, set goals, and plan your financial future—all in one app.

Get 50% OFF your first year with code MONARCHVIP

View More

---

The Broader Retail Backdrop

WH Smith’s decision to rethink its high street business is part of a larger trend in retail. Many operators find traditional retail spaces less appealing because of the rise of e-commerce, rising overhead costs, and changes in how people shop.

On the other hand, transport hubs are places where shopping for convenience is still popular. Brands like WH Smith can keep growing without the limits of the high street because people don’t stay long, they buy a lot of impulse items, and there is a steady flow of travelers every day.

Employee and Market Uncertainty

Even though there is a good reason for this change, it raises big questions about the future for thousands of workers and the communities that depend on WH Smith’s presence on the high street. Unions and other local groups are keeping a close eye on the proceedings and are calling for openness and protections for workers if a sale goes through.

WH Smith says that its high street stores are still making money, but potential buyers may look into ways to cut costs or make the stores more efficient in order to boost profits. This could mean closing stores and laying off workers.

WH Smith’s Path to Focused Growth

The store’s ongoing changes suggest that it is becoming more focused on efficiency, performance, and being in line with the market. It looks like the company’s bigger goal is to focus on strong unit economics, sector resilience, and international scalability.

As WH Smith grows its travel retail business, especially in international airports and transit markets, it will become a stronger player among global convenience and travel retailers. How well it carries out this reallocation of resources will probably affect its future performance. Also, the sale of its high street business will need to be structured in a way that keeps brand value and customer goodwill.

Summary Points

• WH Smith is reviewing options for its high street business, including a possible sale.
• The company is prioritizing growth in its profitable travel retail segment, which has seen strong recent performance.
• Interest in the high street unit has emerged from private equity firms specializing in retail turnarounds.
• WH Smith’s decision to change its strategy is backed by larger trends in the industry, such as more people shopping online and higher property prices.
• Implications for workers and high street presence remain uncertain as sale discussions progress.

Frequently Asked Questions

Why is WH Smith considering selling its high street business?

WH Smith is rethinking its high street operations as part of a strategic shift to focus more on its high-performing travel retail business. The move is driven by the growth in travel retail, which has seen higher foot traffic and better profit margins compared to the slower growth of traditional high street stores.

What does WH Smith’s high street business involve?

WH Smith’s high street division includes over 500 stores across the UK, which sell books, stationery, newspapers, and other household items. Despite its steady cash flow, the high street business is no longer the primary focus for growth, leading the company to reconsider its future direction.

What is WH Smith’s travel retail business?

WH Smith’s travel retail business operates stores in airports, train stations, and other transit hubs, catering to travelers with a high demand for convenience products. This segment has shown significant growth, with a 7% rise in travel revenue from 2021 to 2025.

Which private equity firms are interested in purchasing WH Smith’s high street business?

Private equity firms such as Modella Capital and Alteri Investors have shown interest in purchasing WH Smith’s high street business. These firms specialize in retail turnarounds and are drawn to the stability of WH Smith’s cash flow from its high street operations.

How will this potential sale affect WH Smith employees?

The potential sale of the high street business raises concerns about job security for employees. While WH Smith continues to maintain that the high street stores are profitable, any sale could lead to cost-cutting measures, such as store closures or layoffs, depending on how the new owners choose to restructure the business.

How is the broader retail landscape influencing WH Smith’s decision?

The rise of e-commerce, high overhead costs, and changing consumer habits have made traditional high street retail less appealing. Conversely, transit hubs continue to see steady foot traffic, making them a more profitable environment for retailers like WH Smith to grow.

What does this change mean for the future of WH Smith?

As WH Smith shifts focus to its travel retail business, it aims to strengthen its position in global convenience and travel retail markets. This strategic reallocation of resources is expected to improve its long-term performance, especially in international airports and transit markets.

Will the sale of the high street business affect the brand’s reputation?

WH Smith is working to ensure that the sale, if it happens, is structured in a way that maintains the brand’s value and goodwill. However, the sale could impact the high street presence of the brand, depending on how the transition is handled.

Join a vibrant community with the sole mission to achieve financial independence.

View more

Reviewed and edited by Albert Fang.

See a typo or want to suggest an edit/revision to the content? Use the contact us form to provide feedback.

At FangWallet, we value editorial integrity and open collaboration in curating quality content for readers to enjoy. Much appreciated for the assist.

---

Did you like our article and find it insightful? We encourage sharing the article link with family and friends to benefit as well - better yet, sharing on social media. Thank you for the support! 🍉

Article Title: WH Smith’s Shift in Strategy: Rewriting the Future of British Retail

https://fangwallet.com/2025/07/25/wh-smiths-shift-in-strategy-rewriting-the-future-of-british-retail/

---

The FangWallet Promise

FangWallet is an editorially independent resource - founded on breaking down challenging financial concepts for anyone to understand since 2014. While we adhere to editorial integrity, note that this post may contain references to products from our partners.

The FangWallet promise is always to have your best interest in mind and be transparent and honest about the financial picture.

---

---

Become an Insider

Subscribe to get a free daily budget planner printable to help get your money on track!

Make passive money the right way. No spam.

* indicates required

First Name

Email Address *

/* real people should not fill this in and expect good things - do not remove this or risk form bot signups */

---