WHSmith. Where you have to be.
It sold its entire high street division and is investing only in airports, rail hubs and travel locations. The £3 chocolate bar it couldn't sell on the high street is a high margin product at Gate 45.
THE GIST ON WHSMITH: "Escaping the High Street"
What has WHSmith done?
It has sold off its entire high street division and is now investing solely in rail hubs, airports and travel locations. It might actually be working: travel retail is up 7%, profits are up 16%, and refurbished airport stores have seen sales rocket by 40%.
Why does the airport work?
The economics of the high street don't work any more. Selling books, snacks and stationery can't keep up with falling footfall, rising costs and rising rents. In the airport, that equation flips.
You've got a captive audience with nowhere else to go. People buy out of urgency, not choice. There's no time to shop around, no online alternative and no supermarket for a better deal. The same £3 chocolate bar it can't sell on the high street is a high margin product at Gate 45.
What does it tell us?
It hasn't changed its model. It has just focused on distressed purchases, the only place it can make money. If a brand with 230 years of history has to abandon the high street, that's a damning indictment of retail.
Physical shops can now only operate in two places: where you want to be and where you have to be. Everything in the middle is wiped out by costs, convenience and the collapse of browsing culture.
Do you overpay at airport shops?
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Quick answers
What has WHSmith done with its high street stores?
Sold off the entire division to invest solely in rail hubs, airports and travel locations.
What are the results?
Travel retail is up 7%, profits up 16% and refurbished airport stores' sales up 40%, according to Huw.
Why does it work in airports?
Captive audiences buy out of urgency, with no time to shop around or online alternative.
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