Iconic high street retailer gives crucial update on Post Office closures

• WHSmith is in talks to sell its 500 high street stores, focusing on its travel business

• Concerns were raised about the future of post offices within WHSmith locations amid potential closures

• The retailer confirmed its partnership with the Post Office will continue if the sale goes ahead

• Private equity firms Hilco and Alteri are reportedly interested in buying WHSmith's high street operations

• WHSmith plans to close 17 high street stores in 2025, but the future of the wider network remains uncertain

An iconic high street brand has issued an important update on the future of post offices within its stores, after fears were raised they could be closed.

WHSmith confirmed over the weekend that it is in discussions about potentially selling its network of 500 high street stores.

The historic UK company said it is exploring options for the division as part of its strategy to prioritise its larger and more profitable travel-focused business.

As such, thousands of workers are facing an uncertain future as private equity firms consider a takeover of the retailer’s high street operations.

Private equity firms Hilco and Alteri are reportedly among the interested parties. Both firms are known for their experience in reviving struggling UK retail businesses.

The news also raised fears around the fate of the many post offices housed within WHSmith’s stores, and whether they could close in the event of a sale.

That would likely mean local communities would face a temporary or permanent loss of access to postal services in those areas. But WHSmith has since confirmed that post offices will stay if the sale goes ahead.

In a statement to BBC News, WHSmith described its partnership with the Post Office as an "important part" of its business, adding that the relationship "will continue should a sale of our High Street business to new owners proceed."

The retailer added it was "proud of its partnership" with the Post Office, and that the arrangement would remain intact in the event of a sale.

The BBC reports that that the commercial relationship between WHSmith and the Post Office is mutually beneficial, making it likely that any new owner would maintain the partnership.

Hosting post offices within WHSmith stores helps drive customer footfall, boosting shop sales, while the Post Office benefits from reduced operating costs.

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A spokesperson for the Post Office confirmed that they are in regular contact with WHSmith regarding its plans, saying, "The company has been keeping us updated on their future business plans and how they may evolve."

They added: "There have been no changes to Post Office services in these locations."

Much will depend on the priorities of any new owner and how they choose to manage the estate. For now, the partnership remains intact, with no immediate disruptions expected.

But the prospect of a private equity takeover continues to raise concerns among the retailer’s roughly 5,000 high street workers, who face questions about the future of their jobs and the store network under new ownership.

Peel Hunt analyst Jonathan Pritchard said that while there may be limited opportunities for a new owner to reduce jobs through efficiency measures, further store closures could still be a possibility.

He said: “It is hardly as though this is a fat business, with lots of inefficient processes and store staff dossing about. Quite the opposite.

“Store closures could be material in somebody else’s hands, but WHSmith itself, clearly, has a good line of sight on how to get the most out of the chain, and it is unlikely that anyone else has the silver bullet to regalvanise profitability here.”

WHSmith recently announced plans to close 17 of its high street stores in 2025.

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