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

[HeadsDownThumbsUpEveryone]

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?

On average each branch sells 2-3 A4 pads a day. That fits with my purchasing there. Would not be first port of choice, but in a hurry with nowhere nearby I would buy one.

This thread is about why WHS still exists - part of that is magazine sales - that's the here and now, today, etc.

The magazine sales cannot be keeping the business afloat though. Selling 1.1 million a week only equates to selling 21,154 magazines a day. They have 1049 shops so that averages to approx. 20 magazines per shop each day. So even though it sounds impressive I am doubtful that it is making them enough revenue currently to be viable.

(Please feel free to correct me if my math is out).

DGRossetti that's a good point. I can't think of anything I'd want from WHS that isn't better served elsewhere. Even if you don't allow online/Amazon

Greetings cards - Card factory/Clintons
Books - Waterstones
Stationery - rymans

all which offer a much more satisfactory retail experience than WHS. It really is a miracle the high-street retail arm is still going, as a PP said I expect that will only last as long as their lease expiry dates.

Good luck to them though!

Apparently Patisserie Valerie is on the brink of collapse too.

I'm not surprised I went in one recently for the first time because I saw a card in the window next to an empty cake stand that said cannoli's. I asked if they had any more and the women said they didn't sell Cannoli's, when I pointed out the sign she rudely declared we've not sold them for over a year. So for a year this sign has sat in their shop window and she made seem unreasonable for asking for a cannoli.

As for WH Smith, whilst I'd like to believe they were going to collapse as they are so expensive and shabby I still think they will hang on. I think they will continue to charge too much and give you the hard sell on chocolates until they are challenged by a more reasonably price competitor in their travel outlets. If and when these outlets begin to face competition then they might start thinking about reducing prices and having a make over.

The magazine sales cannot be keeping the business afloat though. Selling 1.1 million a week only equates to selling 21,154 magazines a day. They have 1049 shops so that averages to approx. 20 magazines per shop each day.

1,100,000 divided by 7 is 157,142.

157,142 divided by 1,049 is 149.

FishesaPlenty

I knew I shouldn't attempt math with lack of sleep and a stuffed up head.

Even so 149 magazines per shop isn't great if that's the only product they have that other stores don't.

I’m not surprised about Patisserie Valerie either. I was at my nearest city on Friday and one has opened since I was last there. I went in excitedly to get a piece of cake and the display cabinet was practically empty, it only had around 3 different varieties out.

All of our local WH Smith’s are so shabby and mostly empty. I buy the occasional thing but it’s not my first port of call. Stationary is eye-wateringly expensive, I use Wilkos.

I live in a small town so I might buy my son some books there occasionally but I would choose Waterstones as a nicer place to shop if there was one available.

We have two in our tiny town, one is in the bus station(the only shop in there) so people buy drinks, snacks etc. The other is in the town centre and it is awful, piled high with stock and rude staff. However it is the only shop in our town where you can buy books.

Ours has the branch of the Post Office that closed, now inside them.
It is madly chaotic inside, and as you say everything is overpriced. I can never find anything in there so if I want some stationery I go to Rymans which is at least well organised.
I do buy things from them at the airport and I have occasionally bought children's workbooks (because they are harder to get used and no cheaper new online).
But you see that section as you line up for the PO (impulse buyer, moi?) and then you can't pay for them at the PO. Grr.

Even so 149 magazines per shop isn't great if that's the only product they have that other stores don't.

Hence the effort to sell something else to you every time you go to the till. That's the secret of retailing low-value items - people go into the shop for one item and end up buying a few things they didn't go in for as well.

And as I've said, they're obviously doing something right because despite the OP saying that they're 'struggling again', they've actually increased their profits.

despite the OP saying that they're 'struggling again', they've actually increased their profits.

The trouble is just because they have increased their profits doesn't mean they are not struggling. They were recently voted the worst high street retailer for the 8th year running according to a Which poll.

The company is clearly not doing great if they are having to close stores and make changes, they even acknowledge themselves that its the travel stores propping up the high street shops. They might be making money some at the moment but they are not investing in in their stores or in making customers shopping experiences more enjoyable and as a result they will likely continue to do poorly in the high street.

The trouble is just because they have increased their profits doesn't mean they are not struggling

Errm, yes it does.

They've increased their sales and profits. They're closing 6 stores because of excessive rents and/or under-performance and because of the general malaise that's hit the high street. That's what businesses do - they adapt to changing circumstances. Closing 6 stores out of over 1,000 is hardly an indication that they're 'struggling'.

The fact remains that their whole raison d'être is to make a profit for shareholders and they're doing that very well. Whether the increase in sales comes from the high street, railway stations or online is entirely irrelevant - they're a profitable company and that's what's important.

The fact remains that their whole raison d'être is to make a profit for shareholders and they're doing that very well. Whether the increase in sales comes from the high street, railway stations or online is entirely irrelevant - they're a profitable company and that's what's important.

Yes, and they're "managing" the decline of the high street by concentrating more on service stations, railway stations, airports & hospitals, and have brought in post office counters. That's all working towards future proofing the company as a whole. 6 store closures is small-fry and is what any large chain store does year in year out if some individual stores aren't performing. Even the High St stores as a whole are profit making - there's a long way to go before they're in trouble, and if they continue to manage the decline properly, they'll be fine.

And in today's news, our local paper is reporting that "The PO has announced a new deal with WHSmith to relocate up to 40 offices in WH Smith stores in 2019 on a franchise basis."

So your local PO could be moved into WH Smith branches which, as a private company, could decide to close any branch on a whim. Bang goes the post office too.

www.thewestmorlandgazette.co.uk/news/16977313.public-to-be-consulted-over-relocation-of-kendals-main-post-office/

W.H. Smiths is the worst shop on the high street, and it's been proven by various customer polls.

Everything is a mish mash, they all look very dated, their shelves are high, and their walkways narrow, their stock is too expensive, and as has been said, the only survive because they have post offices inside them, and because they have lots of them at airports and train stations and service stations.

Take them out of the airports, service stations, and train stations, and take the post offices out, and the whole company would crash and burn within a year.

I very rarely go in there, and have probably only been in our local W.H. Smiths 3 or 4 times in the past year. And that was only for a newspaper or a magazine. I have spent less than a fiver all year.

So your local PO could be moved into WH Smith branches which, as a private company, could decide to close any branch on a whim. Bang goes the post office too.
Most Post Offices are already privately owned and there's never been much of a problem with them. Putting them inside a store with another reason to exist is often the only economic way to provide a PO in an area. Our local standalone PO has closed down but we've now got one in McColls and one in Spar. Longer opening hours, other stuff to buy while you're in there and shorter queues.

They're truly shit, but I am fond of the one in Wood Green for some reason.

I don't know but I saw a recently opened store in Australia last year. Unsurprisingly it was in an airport.

I go inn there for magazines, mostly. When there are sales some of their stock, particularly art suppplies, is a good bu. Funnily enough I find they are one chain that still has good staff (in the branches I use, at any rate). Perhaps that is one reason people still go there?

I love a browse in WHSmith. It annoys me that they always try to flog you bars of chocolate at the till, though.

Take them out of the airports, service stations, and train stations, and take the post offices out, and the whole company would crash and burn within a year.

Do you know what I don't think anyone could disagree with that statement at all. The fact they have little to no competition in travel locations is their only saving grace and I think if this was ever challenged they would cease to exist pretty swiftly. Do they have a 100% monopoly in most places regarding this area or would it be possible for another shop to open stores to compete?

I bloody hate WH Smith; it does everything poorly and is overpriced. They also marketed Playboy stationary to children for years (and still do for all I know), which I found repellent and it turned me away for good.

I'm surprised any high street stores are still open.

So so expensive.

Only time I'll get something in a Smiths is at a travel location (also there's one in our closest hospital)

Wonder if my local is one of the high street that'll close. It's never busy, always expensive and rubbish.

Wonder if my local is one of the high street that'll close. It's never busy, always expensive and rubbish.

It ight be that your local WH Smith's is going to close. However, judging by a vast majority of the posters on this thread you have just described approximately 90% of all their high street stores.