WH Smith agrees $400m takeover of American retailer

WH Smith is expanding in the international travel market after striking a $400m (£312m) deal to acquire American rival Marshall Retail Group.

The retailer, which employs 500 staff at its national headquarters at Greenbridge in Swindon, says the acquisition of the American retailer – which has 170 stores with 59 inside airports – will double the size of its international travel business, with completion expected in the first quarter of 2020.

Carl Cowling who is to become chief executive from November 1, said: “This acquisition will accelerate the growth of our international travel business and, combined with InMotion, the market-leading digital accessories airport retailer that we acquired last year, will significantly enhance our scale and growth opportunities in the US, a large and fast-growing travel retail market.”

At a conference in Swindon earlier this month, the out-going chief executive of WH Smith, told delegates how he saw the chain’s future success in airports and railway stations.

Steve Clarke told the Swindon & Wiltshire Local Enterprise Partnership growth summit that WH Smith’s foundations were in railway stations, and that the company was the first to open shops at both Heathrow and Gatwick airports.

Revealing how the company had chosen to invest in physical outlets at travel hubs, rather than take on Amazon in the online sphere, he said: “Rather than invest £100m in a new website, we’ve invested in train stations and airports.

“Now, eighty percent of our sales come from airports and train stations, where we are not impacted by internet shopping and delivery.”