WH Smith is exploring potential options for its high street business, including a sale, the British retailer said.
The company was holding “secret talks” about the sale of its entire high street arm, which has more than 500 stores, Sky News first reported on Saturday.
Responding to the reports, the group said: “WH Smith confirms that it is exploring potential strategic options for this profitable and cash generative part of the group, including a possible sale.”
The company said there was no certainty that any agreement would be reached, and that it would provide updates on the process “as and when appropriate”.
The high street arm of WH Smith is part of the retailer’s more profitable travel business. Its high street business now accounts for only about 15% of annual group trading profit.
“Over the past decade, WH Smith has become a focused global travel retailer,” the statement 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.”
The group reported underlying pre-tax profits of £166m for the year to 31 August – up from £143m the previous year.
But earnings remained flat at £32m in its traditional high street business despite a 2% drop in like-for-like sales thanks to cost-saving efforts.
