WH Smith on the march in Australia, challenging newsagents

WH Smith, the UK public company operating newsagencies in high street, shopping centre, travel and other locations worldwide is expanding its presence in Australia.

Through its WH Smith branded businesses to company is delivering a best-practice retail experience. I anticipate we will see more of these stores open in malls and even on the high street as the company needs critical mass for its model to work in Australia.

The Wild branded businesses are changing too. WH Smith bought Wild well over a year ago and in the last few months the company has rolled out more changes through the group, most evident in company stores.

While not a gift shop I like personally, the WH Smith version of Wild appears to be popular from a mass perspective. It sells (bland?) safe mid range gifts.

Wild was at the Sydney gift fair chasing retailers to sign with the group. This is the strongest sign yet of their desire to expand the group in Australia.

I have heard of Wild franchisees who say they are unhappy with the direction of the group but that does not mean the model will not work in Australia. WH Smith appears to be backing the company with considerable resources to support expansion. You only have to visit the most recent store openings to see best-practice retail in action.

You can also see engagement by WH Smith and Wild through their supplier relationships. They are tapping into more local suppliers and this is creating competitive tension for nearby retailers and for the suppliers involved. I know of one supplier that could suffer as a consequence of their growing WH Smith relationship. It is affecting my own buying decisions for sure.

The part of the WH Smith business that appears to be shrinking is Supanews. This is to be expected given the state of Supanews when WH Smith purchased it from the Gaskin family. I guess the same is true with the Kennys / Giftology business as that was just about dead when purchased too.

From what I observe, the WH Smith and Wild businesses are the ones challenging newsagencies the most. Take time to check them out, especially if they trade near to you. Look at them carefully as they are well-structured businesses with sound processes, consistent buying and a growing presence that will build shopper recognition and confidence.