Since news of WH Smith’s potential High Street stores sale emerged over the weekend, the has been contacted by many people asking about the fate of post offices within the stores, which it has featured since 2006.
As well as posting letters and parcels, post offices are increasingly handling more cash deposits and withdrawals following the closure of many bank branches. They also deal with driving licence or passport renewals and bill payments.
WH Smith has said its High Street stores, which employ around 5,000 people, remain a “profitable and cash-generative part of the group”, and it is exploring various options, “including a possible sale”.
It added: “There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
But the retailer later told the that WH Smith was “proud of its partnership” with the Post Office and that it would remain should a sale go through.
The understands the commercial relationship between both the retailer and the Post Office is strong, with benefits for both parties, therefore any new potential buyer might maintain the current arrangement.
For example, having a post office within the store drives footfall and can lead to a boost in sales for WH Smith shops, while the Post Office can benefit from cheaper operating costs.
The Communication Workers Union (CWU), which says it represents Post Office staff in the shops, had raised concerns over the future of its members, warning any potential closures would be “devastating”.
A spokesman for the Post Office told the said contact had been made with WH Smith over its plans, adding the company was “keeping us updated regularly on their future business plans and how they may evolve”.
“There have been no changes to Post Office services in these locations,” they added.
The first of WH Smith’s 500 stores opened more than 230 years ago, operating as a news vendor. It has since grown into a major High Street and travel retailer.
The travel retail business side of WH Smith – which operates from airports, train stations and hospitals – now accounts for more than 85% of its profit and operates 1,200 stores across 32 countries.
The announcement of a sale comes amid a difficult economic outlook for High Street retailers.
