WH Smith seeks to allay fears over in store Post Offices as it sells off its High Street estate
WH Smith tried to quash fears that hundreds of the Post Office branches in its stores will close as it sells its High Street estate.
The retailer, which opened more than 230 years ago, has a partnership with the Post Office that offers services in nearly 200 of its shops.
The two businesses have been working together since 2006.
But the future of these branches has been thrown into doubt as WH Smith looks to sell its 500 High Street stores by the spring and focus on shops in transport hubs such as train stations and airports.
Shares rose 9 per cent yesterday morning on hopes of a deal but closed the day down 0.1 per cent.
WH Smith’s plans have sparked fears that the elderly in particular will suffer if their local Post Office closes as a result of a sale.
Threat: WH Smith, which opened more than 230 years ago, has a partnership with the Post Office that offers services in nearly 200 of its shops
Both parties are confident a buyer would maintain the Post Office services as they help draw customers into shops – but there is no guarantee.
Potential bidders are thought to include Doug Putman, the Canadian billionaire behind HMV, and Hobbycraft-owner Modella.
But Dennis Reed, from the Silver Voices campaign group for the elderly, said any closures would ‘radically affect’ those who often rely on the Post Office for banking services too.
A Communication Workers Union spokesman warned closures would be ‘devastating’ and that many parts of Britain were already ‘being turned into postal deserts’.
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A Department for Business and Trade spokesman said although ‘this is a commercial matter’ they were ‘committed to ensuring there are sustainable Post Office services for local communities’.
A WH Smith spokesman said: ‘Our Post Office partnership is an important part of our High Street business and will continue should a sale of our High Street business to new owners proceed.’
But the spokesman stressed ‘there can be no certainty that any agreement will be reached’.
A Post Office spokesman said: ‘They are keeping us updated regularly on their future business plans.’
Russ Mould, investment director at broker AJ Bell, said it ‘makes sense’ for WH Smith to focus on its travel business by ditching its High Street arm, which has held back its share price.
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