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WHSmith

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WH Smith PLC
Formerly
  • Pollquote Limited (2004–2006)[1]
  • New WH Smith plc (June–August 2006)[1]
Company typePublic
IndustryRetail
Founded1792;232 years ago(1792)inLondon,England
HeadquartersSwindon,England
Number of locations
525 (High Street)
580 (UK Travel)
600 (International Travel)[a][2]
Area served
Worldwide
Key people
Henry Staunton(Chairman)
Carl Cowling (CEO)
Brands
  • InMotion
  • District Market
  • Flight Stop
  • Lick
  • Marshall Rousso
  • Root & Branch
  • Tech Express
  • curi.o.city
[3]
RevenueIncrease£1,793 million (2023)[2]
Increase£182 million (2023)[2]
Increase£88 million (2023)[2]
Number of employees
14,177 (2023)[2]
WebsiteConsumer
Corporate
Footnotes / references
[4][5]

WH Smith PLC,trading asWHSmith(also writtenWH Smith,and known colloquially asSmith'sand formerly asW. H. Smith & Son), is a British retailer, with headquarters inSwindon,England, which operates a chain ofhigh street,railway station, airport, port, hospital and motorway service station shops selling books, stationery, magazines, newspapers, entertainment products and confectionery.

The company was formed byHenry Walton Smithand his wife Anna in 1792 as a news vendor in London. It remained under the ownership of the Smith family for many years and saw large-scale expansion during the 1970s as the company began to diversify into other markets. Following a rejected private equity takeover in 2004, the company began to focus on its core retail business. It was responsible for the creation of theISBNbook identifier.[6]

WHSmith is listed on theLondon Stock Exchangeand is a constituent of theFTSE 250 Index.

History[edit]

Formation[edit]

The WHSmith logo until the early 1990s, featuring the then-familiar cube of letters. This was briefly revived on special bags and merchandise to mark the firm's 225th anniversary in 2017.

In 1792,Henry Walton Smithand his wife Anna established the business as a news vendor in Little Grosvenor Street, London.[7]After their deaths, the business — valued in 1812 at £1,280 (equivalent to £107,686 in 2023) — was taken over by their youngest sonWilliam Henry Smith,and in 1846 the firm becameW. H. Smith & Sonwhen his only son, also namedWilliam Henry,became a partner.[8]The firm took advantage of therailway boomby opening news-stands onrailway stations,beginning withEustonin 1848.[8]In 1850, the firm opened depots inBirmingham,ManchesterandLiverpool.[9][8]It also ran acirculating libraryservice, from 1860 to 1961, and a publishing business based at the Steam Press,Cirencester.[10][11]The younger W. H. Smith used the success of the firm as a springboard into politics, becoming aMember of Parliament(MP) in 1868[8]and serving as a minister in severalConservativegovernments.[8]

After the death of W. H. Smith the younger in 1891,[12]his widow was createdViscountess Hambledenin her own right;[8]their son inherited the business from his father and theviscountcyfrom his mother. After the death of the second Viscount in 1928, the business was reconstituted as alimited company,in which his son, the third Viscount, owned all the ordinary shares.[7]On the death of the third Viscount in 1948, the death duties were so large that a public holding company had to be formed and shares sold to WH Smith staff and the public.[7]A younger brother of the third Viscount remained chairman until 1972, but the Smith family's control slipped away, and the last family member left the board in 1996.[7]

Stall onHorsted Keynes stationplatform, Sussex, preserved by theBluebell Railway
WHSmith bearing the former logo in Huntingdon, England, in 1986

In 1966, WHSmith originated a nine-digit code for uniquely referencing books, called Standard Book Numbering or SBN. It was adopted as international standard ISO 2108 in 1970, and was used until 1974, when it became theISBNscheme.[6]

Expansion[edit]

From the 1970s, WHSmith began to expand into other retail sectors. WH Smith Travel operated from 1973[7]to 1991. TheDo It Allchain of DIY shops originated with an acquisition in 1979,[7]becoming a joint venture withBootsin 1990;[7]Boots acquired WHSmith's share in June 1996.[7]The bookshop chainWaterstone's,founded by former WHSmith executiveTim Waterstonein 1982, was bought in 1989[7]and sold in 1998.[7]

The expanding WHSmith group adopted a new "house style" or corporate identity in 1973, with a new logo and a change of name from W. H. Smith & Son to WHSmith. The new hexagon-shaped logo featured the initials of the group on the sides of a box employing a new orange and brown colour scheme, replacing a logo that had been in use since before 1830. This updated visual identity extended throughout the company's operations, specified by a design manual, covering everything from the appropriate use of the logo in retail environments, through the design of decorative elements on wrapping paper and promotional material, the layout of stationery, labels and forms, and even crockery, also informing the design of staff uniforms and packaging.[13]

In 1986, WHSmith bought a 75% controlling share of theOur Pricemusic retail chain;[7]in the 1990s it also bought other music retailers including theVirgin Group's smaller (non-Megastore) shops. The 75% share of Virgin Our Price was sold to Virgin Retail Group Ltd in July 1998 for £145m.[7]WHSmith also owned the American record chain The Wall,[14]which was sold toCamelot Musicin 1998.[15]

In March 1998, the company acquiredJohn Menzies's retail outlets for £68m, which for many years had been the main rival to the company's railway-station outlets. This purchase also cleared the way for WHSmith's retail expansion into Scotland. Prior to the takeover, Menzies's larger Scottish shops (carrying a very similar range of products to High Street WHSmith shops elsewhere) dominated the market, and the latter's presence was minimal.[16]

Restructuring[edit]

For several years, the company's retail arm had difficulties competing with specialist book and music chains on one side and large supermarkets on the other. This led to poor financial performance, and a takeover bid in 2004 byPermira,which fell through.[17]The company reacted to this by disposing of its overseas subsidiaries[18]and its publishing businessHodder Headline,in order to concentrate on reforming its core businesses.[19]

In August 2006, the company demerged the retail and news distribution arms of the business into two separate companies: WH Smith plc (retail) andSmiths News plc(newspaper and magazine distribution).[20]In September 2010 WHSmith boughtThe Gadget ShopfromThe Entertainer.[21]That year, it also bought online greeting card retailer Funky Pigeon.[22]

Since 2011[edit]

A WHSmith-owned Funky Pigeon shop atLeeds railway station

In April 2011, WHSmith agreed a deal with the legal services providerQualitySolicitorsunder which QualitySolicitors would place representatives in up to 500 of its UK branches.[23][24][25]Past Timeswent into administration in January 2012, and the brand name was bought by WHSmith in March 2013.[26]

In October 2013, WHSmith announced that it had bought theModelZonebrand and would sell products under this brand through existing WHSmith shops.[27][28][29]In October 2014, WHSmith announced as part of its preliminary statement that it was planning on extending its greetings card offering by launching the low-price brandCardmarketon a trial basis. According to the statement, these trial shops would be in low rent areas and let to WHSmith under short-term leases.[30]The company announced in late 2018 that the trial of Cardmarket would be wound up, with the closure of the Cardmarket stores. This was in addition to the announcement of the closure for at least six WHSmith stores which were deemed economically unviable following a strategic business review.[31]

Late in 2017, the company purchased Cult Pens, a UK-based online retailer of specialist pens, for an undisclosed amount.[32]

In 2018, WHSmith acquired the brand InMotion, the largest airport-based electronics retailer in the US. InMotion expanded to operate stores within UK airports includingHeathrow,ManchesterandBirmingham,as well as overseas in Spain and Australia.[33]

In July 2020, WHSmith announced more than 150 redundancies at its head office, representing approximately 18% of the head office workforce.[34]In November 2020, the company announced that, after a loss of £280 million, it had decided to close 25 stores in the country, noting that eight stores had been closed in 2019.[35]

In August 2020, WHSmith launched a new flagship store in Terminal 2 at Heathrow Airport, in collaboration with Well, which features an in-house pharmacy.[36]

WHSmith announced in June 2023 that it would not be opening any more stores onHigh Streetsin the UK and would instead add stores in airports, railway stations and in the United States and Europe.[37]Also in June, toy retailerToys "R" Usannounced plans to open nine concessions in WHSmith stores, marking the return of the brand's physical presence in the UK after its own stores closed in 2018.[38][39]

In December 2023, the logo was changed as part of a rebranding exercise. The changed stores, which included those inYork,CanterburyandPreston,dropped the word "Smith" in favour of "WHS".[40]

Television[edit]

WHSmith founded one of the UK's earliest cable television channels,Lifestyle,which was carried on almost every cable system in the UK and Ireland prior to the start ofSky Televisionin 1989.[7]By late 1984, the company had bought a 15% stake inScreensportand from January 1986, took over the operations and management whenABCand R Kennedy pulled out.[41]Both channels were closed in 1993.[42][43]

Operations[edit]

United Kingdom[edit]

BrentwoodHigh Street branch
Interior of a branch inPontefract,West Yorkshireseen in 2019

Since 2007, the company has taken on a number ofPost Officebranches, mainly within its high street shops.[44]By April 2016, this had reached 107, including former Crown Post Offices, with plans for an additional 61.[45]

WHSmith also operate a number of shops within hospitals, following its acquisition ofYorkshire-based newsagent chain United News in March 2008.[46]

In addition to its existing joint ventures and franchise shops, the company trialled the smaller format, convenience-based WHSmith Local concept during 2013.[47]Targeted at independent newsagents and post office business owners,[48]a total of 40 such stores were trading and a further 40 planned by the time the 2015 annual report had been published.[49]

Since 2011, the company has also opened shops using its Funky Pigeon brand and subsidiary Funky Pigeon Ltd which offers stationery and personalised greetings cards both online and via stores.[50]In 2024, WHSmith announced that they had reached an exclusive agreement withToys R Usowner WHP Global to open Toys R Us concessions inside its stores.[51][52]

Store atHeathrow Airport

International[edit]

Canadian operations initially began in 1950. By 1970, there were 14 stores in Canada.[53]They continued until 1989, when they were sold to domestic owners and renamed SmithBooks. SmithBooks later merged withColes,formingChapters,which retained the Coles and SmithBooks names and locations while also opening new namesakesuperstores.Many SmithBooks locations were eventually closed or converted to Coles; a few locations still retain the name as of 2013.[54]

In 2018, WHSmith re-entered the Canadian and American markets through its acquisition of Airport Electronics Retailer InMotion[55]and Marshall Retail Group in 2019. As of 2024, WHSmith owns 320 stores in North America.[56]

By 1970, WHSmith had one retail store in both Brussels and Paris.[53]The company retains one shop onRue de Rivoliin the centre ofParis,France. However the store in Paris is now branded as Smith & Son.[57][58][59]

The company acquiredWhitcoulls and Bennettsin New Zealand andAngus & Robertsonin Australia in 2001 with plans to convert Whitcoulls to WHSmith.[60]However they were later sold off along with those inHong Kong International Airport(now asPage One) and in Singapore atChangi Airport,in 2004 (now Times Travel under theTimes Bookstoresbanner).[61][18]

WHSmith restarted its Australian operations in March 2011 following the collapse ofAngus & Robertson/Borderswho held the naming rights in Australia. The first new shop was opened atMelbourne Airport,in theinternational departures terminal.There are now three outlets at Melbourne Airport, three atSouthern Cross railway stationand one withinMelbourne Central.[62]

WHSmith has opened shops in major Indian airports. WHSmith is currently in the process of planning 30 kiosk shops in China.[63]Currently, WHSmith sponsor the IPL cricket team (Sunrisers Hyderabad) (SRH) in India.[64]

In October 2008, WHSmith, together with SSP, opened five branches withinCopenhagen Airport,[65]and in April 2009, opened a branch inStockholm-Arlanda Airport.[66]In 2009, WHSmith opened two shops inShannon Airport,County Clare,Ireland. A further three shops are operated in Dublin Airport's Terminal Two, which opened in November 2010 and 5 shops inDublin Airport's Terminal One, which opened in 2013. The chain promised when winning this latter contract to hire a full-time Irish book buyer; however, the appointment of an Australian, based in London and not in Dublin, drew adverse criticism.[67]

In 2013, it opened an additional four shops at Dublin Airport's Terminal 1. Eason's, currently at T1 in Dublin, asked the airport operator to tender for a new contract one year earlier as the retailer blamed a fall in sales on the success of Terminal 2 at Dublin, which carried the majority of long haul traffic and long haul passengers tend to spend more on books.[68]

WHSmith opened four branches inHelsinki Airport,Finland in late 2016 and early 2017.[69][70]

The company has a shop in Malta International Airport[71]which was opened in 2016 under a franchise agreement with Miller Distributors.[72]

Controversies[edit]

On 19 June 2009, WHSmith apologised after promoting a book on cellar rapistJosef Fritzlas one of the "Top 50 Books for Dad" as aFather's Daygift.[73][74]

In October 2012, WHSmith faced criticism from shooters after the sale of shooting magazines to children under 14 was banned, although it is legal for children under 14 to go shooting. The decision appeared to follow a campaign by animal rights activists. The British Association for Shooting and Conservation (BASC) campaigned against the ban, including a 12,000+ signature petition. In mid-November it emerged that the restrictions had been removed from all UK shooting magazines.[75][76][77]

On 14 October 2013, WHSmith took their website offline because "unacceptable titles were appearing on their website". These were e-books with themes of abuse.[78]

The chain was criticised in 2014 for the condition of its shops, with both analysts and customers accusing the chain of under-investing in its estate.[79][80]

In 2015, an investigation byThe Independentrevealed that WHSmith and other airport retailers were charging VAT to shoppers travelling outside theEuropean Union,then claiming theVATback from thegovernmentand not passing the refund on to customers.[81]This was made possible by the practice of scanning customer's boarding passes at the till point – solely for the benefit of the company – which made the passengers unwitting accomplices in their own deception. After a public outcry, a customer revolt in which many refused to hand over their boarding passes, and an intervention byParliament,the company confirmed in March 2017 that it would pass on the VAT reduction to customers spending over £6, who were travelling outside the EU.[82]

In 2015, the company was also criticised for the prices charged in its branches in hospitals, after media investigations found some items to be on sale at significantly higher prices than in high street branches.[83]In May 2018, WHSmith apologised after it was revealed that it had made more than £700 by selling single tubes of toothpaste for £7.99 through its branch inPinderfields Hospital,Wakefield.[84]The price was described as an 'error' and WHSmith promised that the proceeds from the sales would be donated to a local charity. The price was restored to £2.49, still more than three times the price of 80p charged in a nearbyTesco.[85]

In 2023, the company was found to have broken the minimum wage law, having failed to pay around £1 million to 17,607 of its workers. The company said that this was because of an error related to its uniform policy, with a spokesperson saying "Following a review withHMRCin 2019, and in common with a number of retailers, it was brought to our attention that we had misinterpreted how the statutory wage regulations were applied to our uniform policy for staff working in our stores. This was a genuine error and it was rectified immediately with all colleagues reimbursed in 2019 ".[86]

See also[edit]

Notes[edit]

  1. ^As of 2022.

References[edit]

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  62. ^W. H. Smith touches down in AustraliaArchived25 February 2011 at theWayback MachineInside Retailing
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  74. ^Stina Backer, "Fritzl: a perfect gift for Father's Day, say Tesco and W. H. Smith",The Independent(London), 20 June 2009.
  75. ^Eden, Richard (14 October 2012)."W. H. Smith bans children from buying shooting magazines".The Daily Telegraph.London.Archivedfrom the original on 12 January 2022.Retrieved30 March2013.
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  81. ^Neville, Simon (15 October 2015)."WH Smith continues to demand boarding passes from passengers to avoid paying VAT".The Independent.Retrieved23 August2017.
  82. ^Calder, Simon (14 March 2017)."Boots and WH Smith are giving tax back to airport customers – how does it work?".The Independent.Retrieved23 August2017.
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  84. ^"WHSmith 'sorry' for Pinderfields Hospital £7.99 toothpaste".BBC News.12 May 2018.Retrieved12 May2018.
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  86. ^"Swindon-based retail giant fined after failing to pay staff £1 million".Swindon Advertiser.21 June 2023.Retrieved22 June2023.

External links[edit]