WHSmith profits rise but Post Office deal criticised

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NEWS Swindon-based WHSmith is to incorporate 61 more Post Office branches within its stores has been criticised by unions.

The famous high-street retailer announced the news this week along with a strong financial performance over the last six months.

WHSmith, which is currently looking to move to new offices in Swindon, has said the performance of its stores located in train stations and airports had helped it to post half-year pre-tax profits of £80 million, up 11 per cent.

Stephen Clarke, Group Chief Executive said: ““The Travel performance reflects our ongoing investment in the UK business and growing passenger numbers while internationally we have now secured over 200 stores, including our first airport shops in Spain and Germany.


“The strong performance is only possible through the hard work of the entire team in all parts of our business. I am very grateful for their support.

“Looking ahead, we will continue to focus on profitable growth, cash generation and investing in the business to position us well for the future.”

The decision involving the Post Office is part of a ten-year deal which will see more integration between the two organisations but the Communication Workers Union (CWU) has said the move could have a negative impact on workers.

There are currently 107 Post Office branches in WH Smith and 39 of the Crown sites, which are located on high streets, are included in the move.

Roger Gale, General Manager of the Post Office’s Crown branch network, said: “Crown branches are still run by directly by the Post Office but factors such as high property costs and changing customer habits mean we have to consider new ways to provide our services in some locations.

“Today’s agreement means we can maintain and improve services from convenient high street locations in a commercially sustainable way. It’s great to be working with a partner that we know shares our values and is as committed to thriving Post Office branches.”


However, the move has been slammed by the CWU, which says WH Smith does not have the expertise to run Post Office branches.

Assistant secretary Andy Furey said: "A cherished national company such as the Post Office handing over large Crown Offices in prime locations is an admission that the strategic direction of the Post Office is fundamentally flawed.

"It is completely incongruous that WHSmith can run a major Post Office better than the Post Office itself.

“Our members do not wish to work for WHSmith, which has a track record of zero hours contracts and a minimum wage approach to resourcing.”

Last year, WHSmith announced it was looking to move to new offices in Swindon as the existing site on Greenbridge Road was no longer fit for purpose.