WH Smith sales drop 6% as it plans to sell 500 high street stores

WH Smith has reported a 6% decline in sales at its high street stores during the 21 weeks leading to January 25, coinciding with the company's announcement of potential talks to sell its 500-strong chain to focus on its more profitable travel division. Despite the drop in high street sales, which was anticipated, the travel segment saw a 6% increase in like-for-like sales, contributing to an overall 3% rise in same-store revenues. The high street division now accounts for only about 15% of the group's annual trading profit, prompting strategic discussions with potential buyers, including private equity firms. WH Smith's CEO expressed confidence in the travel business's performance and projected strong growth for 2025, even amid economic uncertainties. The company is also on track to achieve its targeted cost savings of £11 million, having exited the Christmas trading season with a favorable stock position. The challenges facing the high street arm have led to plans to close 17 stores in 2025, following the closure of 14 stores in the past year.