Passengers at major UK airports are reporting massive price hikes for basic goods at WHSmith outlets. the retailer faces accusations of exploiting travelers by charging significantly more for staples than nearby competitors.
The £2.69 Walkers crisps and the Evian gap
The Mail on Sunday reported that a 750ml bottle of Evian costs nearly £4 at WHSmith,while other retailers at Gatwick, Heathrow, and Glasgow offer it for as low as £1.80.. These price disparities are particularly evident when comparing WHSmith to other retailers within the same terminals.
Price gaps extend to common snacks, with Walkers crisps retailing at £2.69 in WHSmith stores compared to approximately £1.40 at Boots. Similarly, Polo mints are being sold for £2.69 at WHSmith, representing a 145 per cent increase over the £1.10 price found at Boots. In London's Victoria railway station, the disparity remains stark, with Evian bottles reaching prices as high as £6 at WHSmith compared to £2 at Boots.
A shift from 480 high-street closures to 590 transit hubs
WHSmith is currently navigating a period of intense financial pressure and structural change. The company recently issued a profit warning and sold approximately £100 million worth of shares over the summer, citing a dip in international travel linked to the Iran war.
This pricing dispute occurs as the retailer undergoes a significant business pivot. WHSmith has divested roughly 480 high-street outlets to focus on its expansive network of approximately 590 locations in airports, train stations, and hospitals across the UK, alongside more than 600 stores worldwide.
Justifying the £4.19 Coca-Cola in Jersey
WHSmith defends its pricing model by citing the complex and expensive environments in which its stores operate. The retailer points to high costs associated with airport venues, such as rent, security, and staffing, as primary drivers for their pricing strategy.
As the report indicates, the chain also claims to provide value through meal deals, multi-buy promotions, and low-cost drink options. However, these justifications have been met with skepticism by consumers, such as a passenger in Jersey who questioned the necessity of a £4.19 price tag for a 500ml bottle of Coca-Cola.
Will Martyn James's warning impact airport shopping?
Consumer expert Martyn James argues that while airport operating costs are undeniably high, airlines and airport businesses should not treat travelers as a captive audience. His warning suggests that as the travel industry evolves, consumers may increasingly seek out alternative retailers to keep vacation expenses manageable.
Several critical questions remain regarding the legitimacy of these markups.. While WHSmith claims to regularly review its pricing to remain competitive, it remains unverified how much of the price hike is a direct result of operating costs versus a strategy to maximize margins from a captive audience. Additionally,it is unclear if the retailer's recent £100 million share sale will lead to a strategic shift in how they approach airport retail pricing.
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