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?

Our local one has really narrow aisles and you have to edge past people ans squeeze through gaps - and I'm thin, must be worse for bigger people.
Disagree with someone who said they have magazines you can get anywhere - ours has huge numbers of very obscure looking magazines.
Not sure they sell many, most people stand and read then walk off.

I hate whs I had a child in hospital for a long time and it was the only store apart from boots at the hospital. The hospital was a fair distance from anywhere else. They overcharged by a huge amount for everything practically. Boots prices were the same as their other stores. For example they sold a lot of food there and as patients and parents were limited with what they could buy they charged so much for simple things! A packet of walkers crisps was 90p a standard packet of crisps! This was 10 years ago 😱 a tube of toothpaste was £3.50, only a £1 in boots. A small bar of chocolate such as dairy milk was over a £1. It was ridiculous.

WHSmiths sell a lot of magazines for hobbies you can't get elsewhere. I buy magazines from them frequently - I don't buy 'women's magazines' (Cosmo, Hello etc.)

Our local one closed down I think about 6 or 7 years ago, then all of a sudden in the past year TWO have opened up within 5 minutes walk of each other, in a reasonably small town centre. Both are quiet, cramped and overpriced.

They overcharged by a huge amount for everything practically.

But this is VERY true of their hospital stores - I bet this, airports and train stations are where their money comes from.

Oh I see someone has already said exactly the same thing above

Another one reminiscing about the amazing Liverpool store - the games section...the books...fountain pens....sigh

Our local Smiths is very narrow so tricky with a buggy, but the staff are helpful and pleasant. I don’t buy many hobby magazines any more but they do sell a good range.

I only use Amazon if I really can’t find something elsewhere.

Also I'm unable to go into WHS as the aisles are so narrow and people won't let me past (I'm in a wheelchair).

But this is VERY true of their hospital stores - I bet this, airports and train stations are where their money comes from.

By the same token, they pay huge rents for those locations - far higher "per square metre" than town centre locations.

Kids like to go in there and they sell art and craft materials, when very few other places do now. They also have good sales and I get buy stocking fillers and school supplies from there.

I don't think the main stores are expensive, although the ones at the stations are. Even though the station stores are usually empty of customers, the mark up and profit on items must be huge.

I quite likeWHSmith simply because it’s somewhere to get books and stationery when there aren’t many other options in town.

Sometimes I just want to walk into town and buy what I need as opposed to giving amazon my money. Also buying things in a shop means I spend less money as I have in the past got to know the local delivery drivers far too well “yes yet another parcel for me” etc

The only "plus" about our local WH Smith is that it opens early. It really can't compete with 2 Indie bookshops and a big Waterstones (and Waitrose giving free newspapers if you spend £10/£15). Now people don't tend to post as many Christmas and birthday cards.... I suppose it is one of the few places left in our town that sells toys.

I tried to buy some art stuff in there a few days ago, self-scanning, and had to get an assistant to follow me round the store to observe the prices on the shelf and correct them on the "till".

WHSmiths sell a lot of magazines for hobbies you can't get elsewhere

I get my magazines by subscription in the post. Cheaper than buying them in store.

Access in ours is now very poor so disabled people never go there anymore

Ours is also terrible for this. It’s a cluttered mess and overpriced and difficult to walk through without bumping into things and other people.

I also wonder how they keep going. I’d never buy books there as you’d definitely be able to find a better price elsewhere.

I get my magazines by subscription in the post. Cheaper than buying them in store.

Which is fine if you are happy with the same mag(s) every month. My OH gets bored with the same, and loves to buy something different every time he goes in.

High street profit was £62m in 2016 and 2017

That really surprises me if I'm being honest. I am guessing all that extra money went to the shareholders though rather than improving the shopping experience for the customers?

I am still yet to see how they can be viable as a high street store, relying on stocking magazines only a few people will buy and harassing customers to buy cheap chocolate is not a good business model. You don't need a business degree to realise that unless you attract a new generation of customers you are not going to last forever.

There's no way it's a viable business as it appears.
It MUST be a front for something.

I am guessing all that extra money went to the shareholders though rather than improving the shopping experience for the customers?

Not all, no, some was paying off debt, some buying equipment and property, some buying its own shares. Nothing wrong with paying dividends - investors wouldn't buy their shares if they didn't get a return - it's just like putting your money into a saving account to earn interest. Most shareholders are institutional/pension schemes so some of those dividends will be financing the pensions of all kinds of workers, not just WHS staff.

@WeBuiltThisBuffetOnSausageRoll......sadly I don't think promoting 5p off Razzle magazine (is that even still in print?) is going to be the strategy to turn the business around. But you could write to them and suggest it 😁

I am still yet to see how they can be viable as a high street store, relying on stocking magazines only a few people will buy and harassing customers to buy cheap chocolate is not a good business model.

Very high profits on newspapers, magazines and collector cards, and mostly on sale or return, so little risk of loss on unsold stock and no need to discount. What's not to like. Also, they're usually "last man standing" in town centres as other newsagents etc will have closed down long ago.

Often they’re the only half decent store inside airports and train stations so I think that side of things has saved their arses. I can’t think of the last time I bought anything from an actual high street WH Smith’s though, its hugely overpriced.

The instore display and merchandising is utter shite and sparks a migraine within 30 seconds of being instore. There's some Danish / scandi businesses selling stationary etc now where we live (Kingston) the prices are great, the layout is lovely and they are always heaving. Kids love it because the prices are good.

I wondered this when i watched the apprentice last night, just how are they still going?!
Customer service seems to always be shit no matter what shop your in.
They are dark and dingy, crammed full of over priced shit. But never have the thing that you want. They look exactly the same as they did in 1985 but more crammed.
Lovely stationary, lovely cards, Educational books and niche magazines.
Theres a market for it, but not as it stands and i am amazed its still going

I am with you op! Even in airports I actively avoid smith’s if possible. The water for instance is about 1.5 times more expensive than it is in Boots or other outlets. Their books are rubbish and I really hate when they try to sell you chocolate or a copy of the telegraph at the till. If I wanted a copy of tge telegraph I’d buy one I don’t want to have to buy one to get a bottle of water at a reasonable price! Everything in there is a total rip off. Only good thing is the magazines.

Our local one is pretty empty, few staff as they have self service tills. The busy area is the Post
Office within and maybe they pick up casual spends from those queuing.