WH Smith Problems - Grade: 55 PDF

Preview

Summary

Problems and solutions...

Description

There is next to nothing you can buy in a WH Smith that cannot be obtained more easily or cheaply online or in a decent supermarket. The business slashed costs on the high street, running down both the stores and the product lines, cutting staff and stocking up on junk food and cheap sandwiches The book offering is pretty thin and rise of eBooks. Now you need a special purpose to pay the price of a high-street spot — a service that cannot be acquired online, or an ability to answer an immediate need, say food for dinner or prescription medicines.

Too consistent  Give staff more autonomy  On the high street, stores need to be more interesting “Even revision classes – they could have a GCSE maths session. It’s about giving people a reason to go in and spend time.” Currently, the prices are too high to compete with the pound shops, but it does not offer a luxurious shopping experience. Factors such as the economic climate, levels of household disposable income that may be impacted by Brexit, seasonality of sales, changing demographics and customer shopping patterns, and raw material costs could also impact on profit performance The Group continues to monitor the implications arising from the process of exiting the European Union and is a member of a number of key industry bodies which provide insight and updates on this process. https://www.thetimes.co.uk/article/wh-smith-stockpiles-pens-to-avoid-brexit-write-off8n39qpffd Changes to import procedures and customs declarations on EU imports and exports to our European stores could impact supply chain lead fines, tariff and duty costs. Product availability could also be impacted by any change in customs procedures that result in process delays at UK ports. The Group conducts risk assessments of all its key suppliers to identify alternatives and develop contingency plans in the event that any of these key suppliers fail. So stockpiling paper at the moment might be a good thing to do. Most of our members who are stockpiling are [doing so] for around four weeks or so. After four weeks, we sort of run dry.”

All of High Street’s stores are held under operating leases, and consequently the Group is exposed to the extent that any store becomes unviable as a result of rental costs. Most Travel stores are held under concession agreements on average for five to ten years, although there is no guarantee that concessions will be renewed or that Travel will be able to bid successfully for new contracts.

We maintain regular dialogue and good relationships with our landlords, discussing any business or potential space changes. The Group also conducts extensive customer research and analysis to gather feedback on changing consumer requirements which is shared with landlords as part of this ongoing relationship management programme.

An act of terrorism or war, or an outbreak of a pandemic disease, could reduce the number of customers visiting WHSmith outlets, causing a decline in revenue and profit. In the past, our Travel business has been particularly impacted by geopolitical events such as major terrorist attacks, which have led to reductions in customer traffic. The Group also has a comprehensive insurance programme covering our global assets, providing cover ranging from property damage and product and public liability, to business interruption and terrorism. Back-up facilities and contingency plans are in place and are reviewed and tested regularly to ensure that business interruptions are minimised....