Will WH Smith closure plans kill specialist magazines too?
The news that WHSmith could be planning to close all of its UK High Street Stores over the coming year could be a disaster for many specialist British magazines, say leading audit, tax and business advisory firm, Blick Rothenberg.
Robert Salter, a director at the firm said: “WHSmith has been the core ‘route to market’ for many specialist magazines, with the average store traditionally having stocked up to 1,500 different publications each year. While WHSmith remains committed to its travel and airport outlets, many of these businesses are much smaller than their traditional High Street stores and don’t stock the same range of magazines.”
Geoff Love, managing director at Hothouse Media, an independent publishing house, said: “The news that WHSmith High Street is struggling is no surprise. Their stores are unattractive and their product offer is confusing. But with supermarkets reducing space allocated to magazines, they are the one High Street chain where consumers can browse a broad selection of specialist magazines.”
He added: “Many independent publishers rely on WHSmith for 50% or more of their retail sales so it would be a major blow. It’s been a while since publishers have relied on retail sales and we all have to diversify our revenue streams, but WHSmith is the only retailer to promote specialist magazines.”
Geoff said: “On an optimistic note, high quality, specialist magazines are having a resurgence and a buyer of WHSmith may create an environment that will encourage consumers to return to the High Street to browse the magazine shelves. If not, then it will be the death knell for many small magazines.”
Robert said: “The potential closure of WHSmith High Street stores comes on top of other pressures which are already facing specialist magazine publishers. The increase in employer’s National Insurance Contributions (NIC) and National Minimum Wage coming in April impacts their running costs and the cost-of-living squeeze is impacting the disposable income of their readers.”
He added: “Some readers of specialist magazines are ad-hoc purchasers. I personally buy certain magazines in a particular week based on whether I find that particular front cover ‘intriguing.’ If WHSmith’s High Street stores close, then publishers will lose out on purchases by ‘on and off’ readers like myself.”