To wonder what WH Smith's secret is...

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So news this morning suggests that WH Smith are struggling again and have reported losses and a plan to overhaul their stores. As part of this review they have announced they are closing 6 of their stores (they still have 610 stores on the high street and 839 travel outlets in airports, train stations etc).

Am I the only one amazed that they are only closing 6 stores. I cannot think of a single thing they sell that cannot be purchased elsewhere for less. Whilst it is horrible news for those employed at these stores, how on earth are they still operating? Other than merging some post offices into some of their stores what key service do they provide to make them such a viable business? What is the secret to their survival when so many bigger stores have disappeared?

My local one is far too cluttered since the main Post Office moved in. I assumed that they'd reduce the number of items they stocked but no, they just pushed everything closer together and added more floor displays. It's virtually impossible to find any particular magazine as there are far too many titles crammed along the shelves.

I agree with most of the above, but I also think alot of people either do not have to worry or are not bothered about paying inflated pricing.

I know some people who like paying for the more expensive option.

It always amazes me the tat that people are willing to buy.

Incidentally, I think a good indicator to a stores future is knowing what it's for. Just before BHS went, just before Woolies went, you'd find yourself standing there thinking "What exactly is this shop for ?"

Seems to apply to latter-day W.H. Smiths . Also Boots, whereas by contrast Lloyds seems to set out exactly what it is.

WHSmiths is not just shops they have distribution centres too that deliver all the news papers and magazines to local shops and news agents each morning.

No, that's 'Smiths News', they split from WH Smith about 10 years ago and are now owned by the company which owns Tuffnells Parcels. Nothing at all to do with WHS any more.

I have wondered for quite some time how they've survived. The stores are awful, so dingy and rammed with stuff. Also never any staff and shops seem really soulless. They need a massive overhaul.

dgrossetti I like Boots. I never even go into Lloyds, whereas I go to Boots weekly when I am in the UK.

Ours seems to be going on forever too, despite, like a lot here, being run down, empty (and huge).

Amazon also have a huge issue with fake goods, non genuine ink etc

This ^. I use Amazon a LOT, too much actually and I really think their Halo is slipping, a good few times now I’ve had products turn up and been almost certain that it is fake or a factory reject. So much so, I’m very dubious of buying fragrances from there now..

Latest one was just yesterday, not fake, but still not good, bought a box of Coca Cola cans through Amazon pantry, the box had been taped shut with parcel tape (ok so could have come loose) but opened the box and cans were missing out of it. Also bought 6bottles of Dove shower gel, they turned up and they’re in Italian, again not a huge problem but did have to use Google translate to ensure they were shower gel and not bath soak.

Also they’re prime is getting a bit slack, everything used to be free one day delivery. Can be 3 or 4 days now,

The secret to their survival I would say has been the sale of impulse confectionary goods which they flog at the tills for next-to-nothing as add on sales.

Do people actually fall for this sales technique? If you go in to buy a pen or a magazine and they offer you chocolate as well wouldn't most people decline?

As an ex employee, most people agree just to shut you up I honestly think. We had ridiculous targets for extra sales at the till, and they knew because each week was a different offer and so if you didn't sell X amount of Y product you're in trouble. We had to say it to each customer, even if they came in every morning, for the same thing and refused each time, even if they told you to stop asking them, it was no excuse if you got caught not giving your spiel. We were encouraged to do it more for customers with children because the children added to the pressure. It's bloody awful and I only lasted 6 months.
They also give out vouchers for other retailers, and get paid for it. You have to scan a voucher for each transaction to make sure you were giving them out.
Add to that that they have a captive audience in hospitals, train stations and airports, where they charge more and can, and there are no benefits for staff other than those set out by law, and I'd say that's why, the travel stores are supporting everything else.

But honestly don't understand how they still run town based ones? Always cheaper to buy elsewhere.

They know their target market and aren't chasing the cheapskate customer. Yes, lots of people have the time and inclination to find the cheapest deal, but likewise, lots aren't interested and will shop for convenience and out of habit.

For books, newspapers and magazines, lots of people want to browse before they choose - you can't do that online. News/Mags aren't cheaper in newsagents & supermarkets, so there's no downside to getting them in WHS if there's a convenient store for you.

There is also little competition on the High Street now, there are rarely other newsagents and the cut price stationery/book shops are always a lottery as to what they have in stock. WHS have survived whilst their competitors have closed, so they've taken that customs from those who've closed.

I prefer Superdrug to Boots.

I think you make a good point DGRossetti

When you look at the shops common on the high street they all have a clear purpose:

Boots - medicines + healthcare
The works - stationary and books
Poundland - most things are £1 great if you are watching the pennies.
Waterstones - books and normally a coffee shop

compare that to WH Smith
They have in most stores: a stationary section, books section, magazine section, toy section, chocolates section, games section, parker pen section, Filofax insert section and a post office. They don't seem to know what role they fill so they try and do it all.

Location in cities - train and airports

Probably enough to provide a big boost

I hope they survive, good for pre-travel

So news this morning suggests that WH Smith are struggling again and have reported losses

I thought they had reported a 3 or 4% drop in profits - not losses.

Our local stores are tatty but very convenient (free parking) - we buy loads of stationery, magazines and school revision guides from them.

I haven't bought anything in WHS since they refused to price match a CD I found cheaper in Woolies down the road. They preferred to lose the sale and refund me

They've been able to keep going because they've had the monopoly on airport and rail station news outlets for donkey's but profits will have been gently declining as mobile devices and internet access improved.

The stores do seem very cluttered when you go in, and the special offer items are not always clear - I did a self-scan and the offer didn't work because I'd got the wrong bottle of water!

The amount of vouchers they give out is worse than Sainsburys! We used to go in to get the cheap McD's books and each one would come with a couple of vouchers that we never used.

They do have a wide variety of magazines. The rest of the stock seems a little overpriced tbh.

The magazine section is really good in the one closest to where my parents live: very diverse with a lot of choice.
The books section is depressing however. Stationery selection is OK but with a Rymans also in town and plenty of card shops around too it's a bit superfluous.
And sadly it is indeed the only bookshop in their town - there used to be a Waterstones but that has gone. You would only be able to get books in charity shops or from the library otherwise (though that isn't necessarily a bad thing).

I'm afraid I am one of the idiots who falls for the confectionery at the till as well :p

They usually have loads of magazines, a much bigger range than anywhere else, and of course their prices are the same.

Agree that they're bad for most other stuff. I suppose it's sometimes OK to pay a premium for convenience when buying a bit of stationary or something.

It's all about the location

There's one in the local hospital here, then there's the airports etc
Basically customers are cornered into buying what they need there as there a no other choice.
Where as on the high street most people would go elsewhere.

My sister compared them to Woolworths the other day. I think they're only surviving as they have stores in nearly every train station!

It's probably the extortionate prices they charge in hospitals keeping them in business.

Way too expensive. I never buy anything from there. The works do good stationary at a fraction of the price.

Because they are the largest possibly the only? national chain of newsagents that stocks a wide range of magazines, they have considerable power over magazine publishers and they are not afraid to use it. If you see a magazine in a prominent place in Smiths, someone has paid a lot of money for that.

I only ever use it at Edinbuegh airport, if I have to and I don't like it. Goods badly displayed and all automated tills.

For years WHS has been in a precipitous decline. Overpriced in stations and airports and dark dank shops in need of renovation in towns. I worked in WHS from 88-91 in Manchester and as far as quality and clients were concerned it was highly thought of, and on a par with shops like M&S and JL. It also made a lot of its money from newsprint wholesaling which is now dead and buried.
It's a shame, but it's a company which never moved with the times and now it's too late. And the station/airport thing should have been investigated by whoever investigates inflated pricing due to a captive public. Thankfully in most airports now there's a Boots and an M&S food.