WH Smith is a global player with over 1,200 stores, but the company has recently chosen to restructure its business model. The company, which historically has had a strong presence in British city centers, recently initiated a divestment of nearly 480 traditional "High Street" stores in its domestic market. The strategy is now to focus entirely on the more profitable travel retail business at airports, train stations and hospitals. Despite growth globally, the investment in the Nordics has proven challenging.
Reitan Takes Over At Gardermoen
In Norway, WH Smith Norway, which operates several stores at Oslo Airport Gardermoen, has been declared bankrupt after a period of financial problems. Now it is clear that Reitan Convenience Norway is taking over the business and will rebrand the stores to Narvesen, reports Dagligvarehandelen.
The reason for the bankruptcy is a deficit over a longer period. Information from Purehelp shows that the Norwegian company showed a deficit of 98 million Norwegian kroner in 2024. Bankruptcy administrator Johan Henrik Nossum at Advokatfirmaet Schjødt AS states that the parent company WH Smith is responsible for the largest debt items and that other suppliers are affected to a limited extent.
The bankruptcy estate has, in collaboration with the landlord Avinor, negotiated an agreement that secures continued operations until the end of 2026. Staff are expected to retain their jobs under Reitan's management.
Large Losses And Write-Downs In Sweden
The Swedish business also shows large deficits. The latest annual report for WH Smith Sweden AB, which refers to the financial year from September 2023 to August 2024, shows that net sales increased to SEK 47.3 million, compared to SEK 3.7 million the previous year.
Despite the increase in sales, losses grew. Profit after financial items amounted to minus SEK 21.8 million, compared to a minus result of SEK 6.2 million the year before.
To strengthen the equity in the Swedish company, a shareholder contribution of SEK 36 million was required during the year. The annual report also shows that the company has carried out write-downs of tangible fixed assets of SEK 17.1 million.
During the last financial year, the Swedish company had an average of 34 employees.
Has Abandoned E-Commerce
In connection with WH Smith selling its traditional British store business, it also divested its online business to Card Factory for 24 million pounds.
Through the sale, WH Smith has transformed into what they themselves call a "pure-play" player in travel retail. This means that the company now only operates physical stores.