WHSmith ponders fate of US operations

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News and books retailer WHSmith is considering the viability of its US operations at airports and hotels, citing the lack of a significant recovery following September 11 2001.

News and books retailer WHSmith is considering the viability of its US operations at airports and hotels, citing the lack of a significant recovery following September 11 2001. A spokesperson told TRW that despite rent relief at several locations and continuous measures to cut costs, the retailer would be examining options including closure and a whole or piecemeal sale of the business over coming weeks.

?The business is dependent on passenger volumes,? the spokesperson said, ?and we have seen drops both in US domestic traffic and on transatlantic and west coast routes. We will be deliberating whether to close, keep or sell the US business, and expect to make an announcement within weeks.?

However, the company said that its UK travel-retail business had fared much better as a result of relatively steady traffic between UK and mainland Europe. Nevertheless, the company is expected to post sales slightly down as a result of the SARS outbreak and the Iraq conflict.

The news could have consequences for Duty Free Air and Ship Supply, which acts as a sub-contractor for WHSmith at Los Angeles International airport.