WH Smith has told the BBC the post offices within its shops will remain should the sale of its High Street business go ahead.
The retailer issued the statement following questions over the future of the 195 post offices within its stores.
The company is in talks over a potential sale of its High Street stores as its business has become more focused on its shops in airports and train stations.
It said its “partnership” with the Post Office was an “important part” of the business and “will continue should a sale of our High Street business to new owners proceed”.
Since news of WH Smith’s potential High Street stores sale emerged over the weekend, the BBC has been contacted by many people asking about the fate of post offices within the stores, which it has featured since 2006.
As well as posting letters and parcels, post offices are increasingly handling more cash deposits and withdrawals following the closure of many bank branches. They also deal with driving licence or passport renewals and bill payments.
WH Smith has said its High Street stores, which employ around 5,000 people, remain a “profitable and cash-generative part of the group”, and it is exploring various options, “including a possible sale”.
It added: “There can be no certainty that any agreement will be reached, and further updates will be provided as and when appropriate.”
But the retailer later told the BBC that WH Smith was “proud of its partnership” with the Post Office and that it would remain should a sale go through.
The BBC understands the commercial relationship between both the retailer and the Post Office is strong, with benefits for both parties, therefore any new potential buyer might maintain the current arrangement.
For example, having a post office within the store drives footfall and can lead to a boost in sales for WH Smith shops, while the Post Office can benefit from cheaper operating costs.
The Communication Workers Union (CWU), which says it represents Post Office staff in the shops, had raised concerns over the future of its members, warning any potential closures would be “devastating”.
A spokesman for the Post Office told the BBC said contact had been made with WH Smith over its plans, adding the company was “keeping us updated regularly on their future business plans and how they may evolve”.
“There have been no changes to Post Office services in these locations,” they added.
The first of WH Smith’s 500 stores opened more than 230 years ago, operating as a news vendor. It has since grown into a major High Street and travel retailer.
The travel retail business side of WH Smith – which operates from airports, train stations and hospitals – now accounts for more than 85% of its profit and operates 1,200 stores across 32 countries.
The announcement of a sale comes amid a difficult economic outlook for High Street retailers.
Louise Martin, 55, from Bognor Regis, works in finance for an independent animal charity with nine retail outlets. Three of these rely on their local WH Smith post office counter for banking, as other branches in the area have closed.
She said losing the local post office would have an impact on “most retail outlets” in the area, including her business.
“We do not have a local bank branch, so the shop managers would have to drive (as walking further wouldn’t be safe with cash) to the alternative post office,” Ms Martin said.
She believes plans should be put in place to ensure similar in-town replacements in the event of any closures, “or at least a facility to bank cash and get change for the tills”.
The state-owned Post Office has been under pressure in recent years. Last November, it announced it was reviewing the future of 115 branches it owns. One option back then it was exploring was a deepening franchise arrangement with WH Smith.
The Post Office’s reputation has also been seriously damaged because of the Horizon IT scandal, which saw hundreds of postmasters and mistress wrongly convicted when faulty software made it look like they were stealing money.
As well as hosting post offices, some WH Smith stores also house Toys R Us concessions.
Revenue from WH Smith’s High Street stores dropped by £17m in 2024 compared with the year before. However, profits remained the same after the business closed 14 of its stores last year.
Shares in WH Smith rose on Monday as investors prepared for a potential cash boost from a sale, with reports suggesting private equity suitors are eyeing a deal to take control of the retailer’s High Street shops.
Analysts have predicted the business could be sold for £100m or more in the coming months.
The government said while any sale would be a “commercial matter” for company, the Post Office had “contractual obligations” and it would be “monitoring” the situation.
The Department for Business and Trade added it was “committed to ensuring there are sustainable post office services for local communities”.
