Despite the retailer being a recent example of pragmatic management, the pandemic might have sealed its fate
In its small way, WH Smith is one of the most remarkable retailing stories of the past 20 years. In the early 2000s, a likely fate for a business built on books, stationery, newspapers, CDs and DVDs looked to be “death by Amazon”. What transpired was a textbook display of pragmatic management.
Under Kate Swann, chief executive from 2003 to 2013, WH Smith simply ensured that, however rapidly its sales fell on the high street, it always cut costs harder and replaced declining DVDs and so forth with higher-margin products such as greeting cards. Even as annual revenues dwindled from £1.1bn in 2005 to £600m in 2017, profits on the high street increased – never mind the occasional table-topping appearance in “worst retailer” polls.
Continue reading...
0 Comments