Mon, 27 Jan 2025

WH Smith says post offices to stay if sale goes ahead

The potential sale of the retailer's High Street stores prompted questions over the fate of the post offices housed within them.
WH Smith has assured that post offices within its stores will remain if its High Street business is sold. The company has issued a statement after concerns were raised over the future of 195 post offices within its shops. The retailer's High Street stores, which employ around 5,000 people, are considered "profitable and cash-generative" despite revenue from these stores dropping by £17m in 2024 compared to the previous year. WH Smith is exploring various options for its High Street business, including a possible sale. The Post Office has said it will continue to operate within WH Smith's shops if a sale goes ahead, as the partnership between the two companies is "important" and benefits both parties. The Commercial relationship between the retailer and the Post Office is strong, with post offices driving footfall and sales for WH Smith stores. A spokesman for the Post Office said that there have been no changes to post office services in these locations, and contact has been made with WH Smith over its plans. The potential sale comes as a difficult time for High Street retailers, and some business owners are concerned about the impact of post office closures on their operations. For example, an independent animal charity relies on the local WH Smith post office counter for banking due to nearby bank branch closures. The Post Office has been under pressure in recent years, with the Horizon IT scandal damaging its reputation. The state-owned company is also reviewing the future of 115 branches it owns, including one that was damaged when a van crashed into it. Analysts predict WH Smith's High Street business could be sold for £100m or more in the coming months.
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