WHSmith, the renowned British retailer of books, stationery, and magazines, is facing challenging times, marked by a series of store closures across the UK. The latest casualties include branches in Diss and Newport, adding to a growing list of closures over the past two years. The Diss closure, attributed to an expiring and unsustainable lease, has evoked sadness among local residents who lament the loss of a familiar shopping destination. Similarly, the impending closure of the Newport branch in April has prompted concerns about the declining availability of traditional retail options, forcing customers to increasingly rely on online shopping. These closures reflect a broader trend impacting the retail sector, driven by a combination of economic pressures and evolving consumer habits.
The reasons behind WHSmith’s downsizing are multifaceted. The company is striving to reduce costs amidst a 4% sales decline, aiming to save up to £10 million. This cost-cutting initiative comes in response to the broader economic challenges affecting the retail landscape, including the pandemic’s lingering effects, the rising cost of living, and the shift towards online shopping. These factors have created a difficult operating environment for brick-and-mortar stores, forcing many retailers to re-evaluate their physical presence. While WHSmith has expanded its presence in travel hubs like airports and railway stations, as well as through partnerships like the Toys R Us concessions, these ventures haven’t entirely offset the pressures on its traditional high street locations.
The closures in Diss and Newport are not isolated incidents. WHSmith has closed at least 10 stores in recent years, spanning locations from Manchester and Bicester to Somerset and Sale. Further closures are planned, including a Haverhill branch in 2025 and two stores in Bournemouth in early 2025. The Bournemouth closures follow the earlier shuttering of the Boscombe branch, contributing to the perception of a declining town centre. These closures mirror a wider trend impacting the British high street, with numerous retailers struggling to maintain profitability in the face of economic headwinds and changing consumer behaviour.
The retail sector as a whole is grappling with a perfect storm of challenges. The pandemic accelerated the shift towards online shopping, impacting foot traffic in physical stores. Simultaneously, rising inflation and the cost-of-living crisis have squeezed consumer spending, further impacting retailers’ bottom lines. Increased energy costs and rising business rates have added to the burden, making it increasingly difficult for some businesses to remain viable. These pressures are compounded by rising employment costs, including increases in National Insurance Contributions and the minimum wage, which further strain retailers’ finances.
The Centre for Retail Research (CRR) paints a bleak picture of the future of British retail. They predict the closure of approximately 17,350 retail sites in 2025, following the closure of 13,000 shops in 2024. This trend represents a significant increase in closures compared to previous years and underscores the profound challenges facing the sector. The CRR also forecasts significant job losses, potentially exceeding 200,000 in 2025, surpassing even the job losses seen during the height of the pandemic in 2020. This grim outlook highlights the potential for widespread economic and social consequences, as communities lose jobs and familiar businesses disappear from their high streets.
The challenges facing WHSmith and the broader retail sector underscore the ongoing transformation of the British high street. While WHSmith is attempting to adapt by focusing on travel locations and partnerships, the future of its traditional high street presence remains uncertain. The combination of economic pressures, changing consumer habits, and rising costs has created a challenging environment for many retailers. The closures of WHSmith stores, once familiar landmarks in numerous communities, symbolize the broader challenges facing the British high street and the need for innovative solutions to ensure its long-term viability. As consumers increasingly embrace online shopping and economic pressures continue to mount, the landscape of British retail is undergoing a significant shift, leaving communities to grapple with the loss of familiar stores and the uncertainty of what the future holds.
