WH Smith's Swann hails 'fantastic' response to UK Post Office trial

Kate Swann, chief executive of WH Smith PLC, the newspapers, books and stationery retailer, said customer reaction to its experiment of in-store franchised Crown Post Office outlets has been very positive — a strong signal that the controversial trial will be extended across the group’s network.

‘Feedback from Hammersmith (one of six trial stores) customers, has been fantastic,’ she told shareholders at the 215-year-old retailer’s annual meeting.

Five other trial stores, in Swansea, Shrewsbury, Slough, Ashton-under-Lyne and Altrincham, have been running since the autumn — their establishment coinciding with the closure of traditional Post Offices in the same locations and consequent job losses.

Swann explained the trial has gone well as the outlets take up a relatively small amount of space but drive footfall. She noted that incremental sales of stationery products had been a feature.

A spokeswoman for WH Smith, which trades from 543 high street stores and 129 outlets at airports, train stations and motorway service areas, said the retailer is in constant dialogue with the Post Office and would say more about the trial when it publishes interim results on April 19.

However, the prospect of a roll-out was immediately condemned by the Communications Workers Union, which represents postal workers.

‘We are fully opposed to the back door privatisation of Crown Post Offices through outsourcing to low pay employers like WH Smith,’ said Andy Furey, the union’s assistant secretary.

‘In the past this has always led to an inferior service for the public and the loss of secure and well paid employment for counter staff.

‘The public prefer to access essential services from Crown Post Offices who offer more products and services than franchised stores. WH Smith’s bottom line is how much money they can make compared to Crown Post Offices who operate to assist and add value to the local community.’

The Post Office issue aside, the AGM was a low key, sparsely attended affair.

Shareholders ignored the issue of WH Smith’s falling underlying sales and the sustainability of Swann’s strategy of cost cutting and margin gains, preferring to quiz the board on its attitude to trimming carrier bag costs and reducing queues.

At 4.15 pm shares in WH Smith were up 4-1/2 pence at 402 pence, valuing the business at 735 mln stg.