WH Smith set to cut 1,500 jobs as pandemic hits sales

In a trading statement, the group said its revenue was down 57% in July compared with the same month last year and it now expects to deliver a pre-tax loss of between £70m and £75m for the financial year ending 31 August 2020.

The retailer has reopened its remaining high street stores, with 575 now open, but footfall is “significantly down” on 2019 levels. However, its online businesses have continued to perform strongly, the retailer added.

WH Smith group chief executive, Carl Cowling, said: “Covid-19 continues to have a significant impact on the WH Smith Group. Throughout the pandemic, we have responded quickly and taken decisive actions to protect the business including substantially strengthening our financial position. We have also welcomed support from government where available.

He added: “While there has been some progress in our High Street business, it does continue to be adversely affected by low levels of footfall. As a result, we now need to take further action to reduce costs across our businesses. I regret that this will have an impact on a significant number of colleagues whose roles will be affected by these necessary actions, and we will do everything we can to support them at this challenging time.”

In response to the news, George Charles, spokesperson for www.MoneySavingHeroes.co.uk, said: “It seems like the ‘high’ street is going through its lowest point in recent history and it’s almost certain more devastating news is just around the corner.

“More must be done; the furlough scheme did nothing but delay the inevitable and now we are seeing major high street players making cuts left right and centre, affecting thousands of employees,  in order to keep their head above the water. With the job market scarce, this is a truly terrifying time for those who have suddenly lost their income, with unemployment figures set to continue to rise throughout this incredibly challenging and unpredictable year.”