WHSmith revamps in bid to revive fortunes

General merchandise giant WHSmith is preparing to revamp its entire 770-strong UK store portfolio.

The multi-million pound transformation follows an upgrade of back-office systems. Both initiatives are core components of the retailer's improvement programme, following a disappointing Christmas and difficulties in the US.

Last month's opening of a new-look destination store in Guildford was the tip of the iceberg of planned changes. The group's 550 UK high street shops and 220 travel stores are next in line for refreshment.

'We are working on a new travel concept store for after Christmas and a new local store some time after that,' said UK retail managing director Beverley Hodson.

The travel and local outlet refits will incorporate elements from Guildford as well as other features, said Hodson.

An investment in systems will allow supply chain improvements that will enable the retailer to satisfy shoppers more effectively. Hodson explained: 'We are in the throes of installing Retek. That will give us more flexibility in the way we tailor ranges to different locations.'

Investec analyst Matthew McEachran said: 'WHSmith has an opportunity to become more efficient and, if it can support that with store-fits, you could see some interesting things happening.'

More change is likely when Kate Swann joins from Argos as chief executive. She replaces Richard Handover, who will become chairman.