Victor Chi
Updated on: October 11, 2024 4:56 am GMT
WHSmith, a high street staple with over 1,400 branches across the UK, is preparing to shut its store on Broad Street in March, Cambridgeshire, on January 25 of next year. This closure is part of a broader trend affecting retail businesses across the nation as they adapt to changing market conditions.
Plans for Closure and Support for Employees
The decision to close the March location comes amid what the company described as an “unsustainable” business environment. A spokesperson for WHSmith expressed disappointment over the closure, thanking customers for their support and acknowledging the hard work of in-store employees. The company has committed to supporting its staff during this transition, aiming to redeploy affected workers to nearby stores when feasible.
In addition to the upcoming March store closure, WHSmith recently closed its Bridgwater location in Somerset, citing similar reasons. “It is no longer sustainable to continue to trade from this location,” the spokesperson stated. The rising costs of rent were a significant factor in this decision.
Wider Retail Challenges Impacting High Streets
The closures reflect a troubling pattern for high street retailers, as many face increasingly challenging economic conditions. Reduced in-store sales and rising operational costs, exacerbated by the growth of online shopping, are contributing to a decline in foot traffic across town centers.
According to recent reports, many retailers, including WHSmith, have struggled to maintain profitability while adapting to consumer habits that favor online purchasing. Local businesses have echoed this sentiment, noting that high rents and increased operational costs have made it more difficult for traditional shops to survive.
Impact on Local Communities
The shutdown of these stores not only affects the employees but also has broader implications for local economies. Empty storefronts can lead to a decline in foot traffic, impacting surrounding businesses. Community members have voiced their concerns on social media about the future of their town centers, stating that rising rent prices hinder the viability of local shops.
One local commenter highlighted the need for more manageable rental rates: “They need to stop upping the rent on these places all the time,” they posted, adding that high rates prevent decent shops from operating in the area.
The Shift in Retail Strategy
Despite the challenges faced by high street locations, WHSmith is planning for growth in other sectors. The retailer is set to open 110 new stores this year in airports, railway stations, and hospitals. This shift reflects a strategic move towards capturing a more stable customer base in locations with high footfall.
WHSmith’s focus on travel-based retailing has seen success, especially as air travel recovers to near pre-pandemic levels. Chief Executive Carl Cowling emphasized the potential for growth in the US market, noting that WHSmith is in its strongest position as a global travel retailer.
Future of the High Street
The challenges facing brick-and-mortar stores are not unique to WHSmith. Many well-known retailers have struggled, leading to widespread closures. Brands such as Next, Marks & Spencer, Marking the closures are often augmented by geographical shifts in shopping preferences, as more consumers turn to retail parks that offer easier access and free parking.
Industry experts have observed that the closure of significant stores can lead to a cascade effect that jeopardizes nearby businesses, as diminished foot traffic adversely affects the high street’s economic landscape.
Retail analyst Richard Hunter noted that chains like WHSmith can leverage ‘captive’ customers in key locations, enhancing potential revenue despite the decline on high streets. “The return of near-normality in air travel has been a particular boon to this segment of the group,” he stated.
Conclusion
WHSmith is getting ready to close its store in March, showing how shopping is changing in the UK. The company wants to do well in travel retail, but closing stores affects local communities. This situation highlights bigger changes that are happening to shops on the high street. It’s hard to say what will happen to traditional retailers, but it’s really important for them to keep up with what customers want.
