"Hartsfield shops to change hands"

Thursday, September 18, 2003

Airport shops to change hands 
By KIRSTEN TAGAMI 
The Atlanta (GA) Journal-Constitution 

 
One of the biggest concessionaires at Hartsfield International Airport is
getting out of the airport retail business. It also will close its Atlanta
corporate office, eliminating about 100 jobs.

London-based WHSmith PLC is selling its Atlanta-based U.S. airport division,
WHSmith USA Travel Retail, to competitor Hudson Group of East Rutherford,
N.J.

The deal was completed Wednesday and is worth $64 million, said Richard
Handover, group chief executive for WHSmith PLC.

WHSmith sells books, magazines, newspapers, candy and other items in shops
in Hartsfield's atrium, international terminal and Concourse A. Newsstand
employees at Hartsfield and other U.S. airports will transfer to Hudson,
said Handover. Hudson already operates several newsstands at Hartsfield.

WHSmith has faced "severe losses" during the past two years in its American
airport shops, due to the economic downturn, the slump in travel related to
the Sept. 11 terror attacks and more recently, fear of SARS, Handover said.

He said shareholders in Britain were increasingly nervous about the U.S.
businesses, and WHSmith didn't want to make the kind of investment that
would be needed to stay in the business for the long haul.

The company will continue to operate airport shops in the United Kingdom,
Australia and New Zealand, where it also has a large non-airport retail
presence.

WHSmith has shops in 22 U.S. airports, including 10 of the busiest. The
company has been at Hartsfield since 1985, when it purchased Elson's, an
existing airport concessions business.

The transfer of ownership of the Hartsfield shops is subject to approval by
Hartsfield management and the Atlanta City Council, which oversees the
operation of the airport.

WHSmith also is selling off all of its U.S. hotel-based gift shops to a
former top executive.

The sale includes gift shops in several large hotel chains, including
Hilton, Hyatt and Marriott.


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