More Post Offices Set To Move Into WHSmith

The Post Office is to move up to 61 more branches into WHSmith stores over the next year as part of a new 10-year agreement to relocate sites to the retailer.

There have already been 107 transferred to WHSmith over the past decade.

Post Office chief executive Paula Vennells said it would help secure the presence of branches on the high street, as well as bringing new investment into the network.

However, the Communication Workers Union (CWU) said it was a "kick in the teeth" for Post Office workers.

The announcement covers so-called Crown (Other OTC: CWLDF - news) offices that are directly run by the Post Office.

Roger Gale, general manager of the Crown branch network, said: "The vast majority of the Post Office's network of 11,500 Post Office branches is already run on a franchise or agency basis."

"Crown branches are still run by directly by the Post Office but factors such as high property costs and changing customer habits mean we have to consider new ways to provide our services in some locations."

The agreement was announced as WHSmith reported an 11% rise in pre-tax profits to £80m for the six months to the end of February.

Stationery and book sales were boosted by the craze for colouring-in and activity books for adults.

Overall same-store sales rose 2% with a 5% increase at travel stores - based largely at airports and railway stations – and a flat performance for WHSmith's high street network.