WH Smith has confirmed that it is in talks to sell its bookstore division, which has 500 branches, employs more than 5,000 staff. In early trading on the London Stock Exchange on January 27, WHS's shares were up 6%, to 1,212.

The news does not come as a surprise, following similar departures from high streets in the U.K. of such other famous names as Woolworths, Debenhams, and Littlewoods. WHS’s High Street shops have been reporting steady declines in turnover: in the chain's last set of full-year results, sales were down from £469 million to £452 million, while a decade ago, the figure was £684 million. WHS's policy has been to manage this decline by cutting costs, with the result being that the stores have become less attractive places to visit. The timing of this news may suggest that WHS’s High Street business did not enjoy a strong Christmas.

The chain's travel business, however, is a success. Last year, it reported revenue up 11%, and profits up to £189 million, from £164 million in 2022-23.

Press reports at the weekend offered a gloomy view of the future of the High Street business. "Investor sentiment towards retailers has turned from bad to worse," the Sunday Times commented, suggesting that "the sale appears destined to attract bargain hunters." It added: "It seems highly likely any new buyer will soon be pulling down the shutters on many of the stores."

In a statement in response, WHS writes that it "notes the recent press speculation regarding its High Street business" and "confirms that it is exploring potential strategic options for this profitable and cash generative part of the Group, including a possible sale. Over the past decade," it added, "WH Smith has become a focused global travel retailer. There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate."

On January 29, WH Smith, now branding itself “the global travel retailer,” released a financial update covering the 21-week period leading up to January 25, pointing to “a good start to the financial year with strong growth across all travel divisions and acceleration in like-for-like revenue in North America.”

The High Street division, however, saw sales shrink over the vital Christmas period. The company also announced plans to close 17 High Street stores in the next few weeks.

Total revenue was up 4% in the period compared to the prior year. Revenue in WH Smith’s travel division was up 8% worldwide over 2024, and up 7% in the U.K., while revenue in its High Street division fell 6%. Shares in the retailer rose 6% in early trading on the London Stock Exchange following the update.

This story has been updated with further information.