Congratulations to Modella Capital for winning the takeover battle for WHSmith stores.
It will be a wrench to see the WHSmith name disappear from the high street after more than 230 years, but if it means as a nation we still have access to the latest newspapers, magazines and books it’s a price worth paying. Even if it means we will never see the famous cube logo return.
As a child, WHSmith was my favourite shop. Indeed, it remained that way for many years.
While my mum went off to browse boring stores like Marks & Spencer, to visit the gas board to pay the bills, or to make a transaction at the bank, I was able to go and browse the wonder emporium that was the Canterbury branch of WHSmith.
Growing up in the 1980s meant there was a smorgasbord of comics awaiting my attention. Some visits would be rewarded with a new issue of Doctor Who Magazine, others an additional comic to the ones I had on order – a rogue Nutty was usually a favourite.
Next to it was the pen and typewriter section, with the very best kept in a glass display counter.
Round the corner was the book section, complete with many precious Target Doctor Who novels – this was long before the days of DVDs or Videos.
Pop upstairs and the record department was constantly evolving. Eight tracks, cassettes, CDs, mini discs … all present and correct. A video section and a growing computer section, changing as new technologies came in.
And then back down to the other entrance and the well-packed stationery department. Nothing beats the thrill of getting a new notepad or sketchbook and putting pen to paper.
Going on holiday, seeing that cubed logo meant an opportunity to get new reading material, be it a comic, a magazine or a book. WHSmith was my happy place. A store that promised so much and always delivered.
In short, this Aladdin’s cave captivated and delighted me. It spurred my imagination and made me hope that every birthday card contained not cash but gift vouchers for the greatest store in the universe.
But at some point over the past 20 years, these well-lit imagination stations turned into a miserable, dimly lit hellhole where staff looked as if they were being mistreated, lights were deliberately left off and you could only buy something if you were offered an outrageously expensive bar of chocolate.
And price is one of the problems.
Confectionary on special offer is still cheaper in just about every other store. Why would people pay twice the price for a bag of Haribos? A couple of quid more for a Toblerone? As a business model it makes no sense.
It’s a similar problem with stationery: pens, sticky tape, exercise pads … all available for much less in stores such as Ryman. It’s not the supermarket effect.
But the dowdy stores and overpriced sweets, pens and chocolate is nothing compared to the way WHSmith has treated its USPs.
Much has been written about the threat to booksellers from online stores and, yes, I have been guilty of buying books from my computer. There are reasons for it. Initially price … and that led to the collapse of the NET book agreement. Books still have recommended prices on the back and the discount offered by Amazon tends to be limited to special deals meaning there is little reason other than the convenience of buying online.
And online does make things easier.
At Christmas, a specific book was needed to give to someone as a present. It was not in stock in either WHSmith or Waterstones. It could have been ordered, but this was the Saturday before the big day and that was not an option.
It could have been on my doorstep the next day with a few clicks.
The range and selection of WHSmith has narrowed greatly as shelf space has been reduced to mass market titles that might sell or copies of time sensitive publications left to rot.
These yearbooks would often crop up in sales, like calendars and diaries, at prices that were still eye wateringly high given their uselessness and get mocked on social media in the process.
WHSmith has one other USP, and it is unique among the high street: newspapers and magazines.
It is estimated this sector is worth just under £2 billion a year. That might be down from just under £10 billion a year in 2005, but it’s still a lot of money. And it could be higher with the right nurturing.
Newspapers and magazines invite repeat purchases meaning customers have a reason to return on a daily, weekly or monthly basis. These aren’t luxury products, these are bread and butter that, when correctly marketed and paired with appropriately priced compatible goods, will see people open their wallets. Regularly.
What did WHSmith management do? Shrink the retail space, hide the shelves, let the magazines become a jumble sale and never shout about the wonder of reading. It is a barmy business decision, and one that should be avoided.
It’s like Royal Mail forgetting to tell customers how much people appreciate handwritten letters and postcards, valuing them over emails and printed round robins.
Retail is a tough game right now, but people are looking for reasons to leave their homes and get back to physical shops. You need to give them confidence they will enjoy shopping with you.
Some suggestions for WHSmith’s new owner to follow
Here are some suggestions:
- Sort out the lighting, and ensure the stores are clean and pleasant to visit
- Put news and magazines front and centre, and promote potential titles to the public – help them understand more about how great sitting down to read a printed magazine can be
- Find a way to reward those loyal customers who come in daily, weekly or monthly for a good read
- Put some pride back into the bookstore area, and give people a reason to order books from stores rather than online
- Host book groups, signings and recitals
- Find a way of reducing prices on stationery and confectionary so it can actually compete with the high street
- And find a way of ensuring the staff you inherit are cherished and encouraged, for these are your brand ambassadors.
So, TGJones has an opportunity to wipe the slate clean, start afresh and give a once-loved high street giant a makeover that will do it proud and keep the nation reading. Do that and WHSmith, under its new name, will serve the high street for another 230 years and beyond.
Just don’t be afraid to create your own cube logo…