WH Smiths at Railway Stations

[moonrakerz]

The reason is that they have monopoly at railway stations and airports.

No - the reason is that Network Rail have a monopoly - not WH Smiths.
Suggest you read a book called The Undercover Economist. There is a chapter on the price of coffee at Waterloo - the same applies to every other outlet on these sorts of sites.

The Government is the prime cause for high prices on the motorways. They state that all these facilities have to be provided 24 hrs a day, then impose masses of rules and regulations on those who run the sites. The cost of all this has to be passed to the customer.
One example: Sausage rolls in the "warm cupboard" are only allowed to be displayed for a short period of time, then they have to be thrown away - far more are thrown away than are ever eaten.

Mind you I wouldn't eat one - I know what WHSmith pay for them hock:

 

[Nym]

No - the reason is that Network Rail have a monopoly - not WH Smiths.
Suggest you read a book called The Undercover Economist. There is a chapter on the price of coffee at Waterloo - the same applies to every other outlet on these sorts of sites.

The Government is the prime cause for high prices on the motorways. They state that all these facilities have to be provided 24 hrs a day, then impose masses of rules and regulations on those who run the sites. The cost of all this has to be passed to the customer.
One example: Sausage rolls in the "warm cupboard" are only allowed to be displayed for a short period of time, then they have to be thrown away - far more are thrown away than are ever eaten.

Mind you I wouldn't eat one - I know what WHSmith pay for them hock:

You're not the only one I know what WHS pay (at branch level) for a bottle of coke, and put it this way, no amount of rent makes up for that profit margin

 

[starrymarkb]

Dublin Airport airside was €2 for a twix!

 

[Statto]

Simple solution then, vote with your feet and stop buying stuff at WHSmith...

Which is exactly what i did, i was comparing prices for the same product at different stores at the same Station.

 

[Deerfold]

No - the reason is that Network Rail have a monopoly - not WH Smiths.

Network Rail has a monopoly - WH Smiths then does its best to make sure they do too - take London's Victoria Station with its multiple Smiths - Smiths are making sure they're the only newsagent there - and are presumably willing to pay the rent on all places designated by Network Rail as Newsagents the to make that happen.

If there was a cheaper newsagents in the station Smiths would suffer but so long as they're not and enough people don't want to go looking for another they'll keep their prices high. I'm sure they don't *need* that many stores there other than to keep others out.

 

[91101]

Network Rail are trying to diversify its portfolio of retailers where possible. More linked with the dominance of SSP rather than WHSmiths. You will notice the trend towards new and varied retailers evidenced at St Pancras, and furthered by the retailers that will be going into the new KGX.

 

[jon0844]

It's never good to allow one company to take over, and control pricing. I was told that this is why McDonald's was kicked out of service stations, as they wanted to keep the prices at the ordinary high-street prices.

Suffice to say, Burger King was quite happy to charge stupid prices (as in the same as at airports) - although at least at train stations, you get the 20% off with a Bite card. I wonder if the reduction of SSP outlets (and competition) will see prices fall, or whether they'll all simply get together and form a cartel anyway.

 

[moonrakerz]

You're not the only one I know what WHS pay (at branch level) for a bottle of coke, and put it this way, no amount of rent makes up for that profit margin

I think you may have missed missed my point - the "quality" of the contents of a bottle of coke are the same whatever you pay for it. The "quality" of the contents of a sos roll from WHS on the motorway is several orders of magnitude below what I would ever consider eating

Network Rail has a monopoly - WH Smiths then does its best to make sure they do too - take London's Victoria Station with its multiple Smiths - Smiths are making sure they're the only newsagent there - and are presumably willing to pay the rent on all places designated by Network Rail as Newsagents the to make that happen.

WHS don't have to make sure they have a monopoly - the extortionate rent charged by Network Rail ensures that they do have the monopoly. It's the old "you scratch my back.........." routine.
The last thing that Network Rail want is genuine competition ! That will force prices down and that will make people like WHS want to pay less rent hock:

 

[jon0844]

I have no doubt that there are certain deals and incentives for all to keep prices high. Just as many big companies price fix and won't supply those who discount (I won't name them, but they're pretty obvious).

 

[Nym]

That would be the same comapnies that are very involved in the realm of sold space in order to create massive barriers to entry for competitors...

 

[starrymarkb]

I have no doubt that there are certain deals and incentives for all to keep prices high. Just as many big companies price fix and won't supply those who discount (I won't name them, but they're pretty obvious).

Urban Decay (make-up) are one, a friend enquired about wholesale for her webshop and was refused as they wanted to preserve a high end buying experience at select retailers (ie those that thought £15 was a reasonable price for a tiny layer of eyeshadow in a fancy mount and didn't stock the likes of Barry M (£4 for a largish pot)

 

[Butts]

I think Watchdog or Rip Off Britain need to be sent into Airports and Railway Stations to put WHS under the microscope

 

[jon0844]

Consumer shows have attacked service stations quite a bit, but they always come back by saying how expensive it is to operate such sites - and then it ends there.

I do think some service stations have improved a fair bit in recent years, with better food (or choice of food) and it's probably better to eat in, if you have time, than buy snacks at WH Smith and take back to the car (or eat on the way).

Ideally, don't buy anything from anyone and use your SatNav to find somewhere a mile or two off the next exit, and to get back to the railway stations - use Google to find a nearby Tesco Metro/Sainsbury's Metro or similar. King's Cross may be getting loads of fancy new shops and eateries, for example, but there's a load of new developments nearby (including a Tesco) and it's quite a nice place to walk around.

 

[Class 33]

WHSmith's at train stations are a rip-off. Stupid prices like £1.69 for a 500ml bottle of fizzy drink, 95p for a packet of crisps, 79p for a tube of Wine Gums, £3.50 for Egg & Bacon sandwiches! Ridiculous prices! I avoid buying anything from there now. If I'm travelling from home I prepare in advance by buying drinks, snacks, and sweets from places like Poundland or the 99p shop! And usually either buy sandwiches from Sainsbury's or Tesco or home made ones! Works out much cheaper! If I'm travelling home from a few days or holiday away, then I usually go in Sainsbury's, Marks and Spencer, or Boots to get my sandwiches, snacks, and drinks which charge more reasonable prices than WHSmith's!

 

[WestCoast]

I do think some service stations have improved a fair bit in recent years, with better food (or choice of food) and it's probably better to eat in, if you have time, than buy snacks at WH Smith and take back to the car (or eat on the way).

Tebay on the M6 in Cumbria is easily the best service station in the country! It's independently owned and has a farm shop, a very nice cafe/restaurant with fresh food and very modern toilet facilities. Not a WHSmith or Burger King in sight. In Summer, they have a grill outside as well.

 

[jon0844]

Do they charge rip-off prices? If not, I wonder why the big boys use the excuse of the increased costs of providing the facilities?

 

[WestCoast]

Do they charge rip-off prices? If not, I wonder why the big boys use the excuse of the increased costs of providing the facilities?

The prices IIRC aren't particularly cheap, but they aren't excessive either and you get a lot better quality for your money. People actually go just to have lunch!

www.westmorland.com/tebay-services

 

[jon0844]

If service stations provided good food, I am sure many more people would make a point of going there. They do generally offer a good choice, but what sane person would do that with a Moto or Welcome Break?

 

[Butts]

If service stations provided good food, I am sure many more people would make a point of going there. They do generally offer a good choice, but what sane person would do that with a Moto or Welcome Break?

If you go back a few years when "Little Chef" were present on M'way outlets it wasn't to bad.

I used to like the old "Olympic Breakfast" - hardly sporting but very tasty.

There used to be one near Swansea that was open 24/7 at the Granada Services.

 

[Bellwater]

Noticed today they're doing 2 cans of Energy Drink for 2.50(which normally are up to 1.80 in some shops)which wasn't bad.

 

[VTPreston_Tez]

Preston hosts a WHSmith on the station, it's expensive alright. The one at Bristol services are worse though, like 50% extra cost so you can't exactly complain

 

[Nym]

That isn't a WHSmith at a service station, the're franchise stores...

 

[bicbasher]

The WHSmith at Stratford International surely must be one of the exceptions to the typical travel shop? It's tidy (no newspapers in bundles on the floor) and I didn't see a single customer!

 

[Nym]

My stores where all tidy by the time I'd finished with them thankyou very much!

 

[DJ737]

G'day

There is now a WHSmith at Melbourne's Southern Cross station and yes it does seem quite expensive, I hasd a quick look as I passed thru this morning.

Not sure how long it has been there, but it can't be more than a month.http://www.southerncrossstation.net.au/ about the station, if anyones interested.

Cheers
DJ737
Melbourne, Australia

 

[Butts]

G'day

There is now a WHSmith at Melbourne's Southern Cross station and yes it does seem quite expensive, I hasd a quick look as I passed thru this morning.

Not sure how long it has been there, but it can't be more than a month.http://www.southerncrossstation.net.au/ about the station, if anyones interested.

Cheers
DJ737
Melbourne, Australia

Not satisfied with ripping off Poms are they now extending their reach to our Australian Cousins

 

[Jonny]

I read in a book by a notable economist that the main reason was that rents on railway station units are sky-high. Now, that's all well and good if it's a Network Rail station (his example - London Waterloo - is) and they re-invest the surplus on the railway, but not all stations are

 

[island]

G'day

There is now a WHSmith at Melbourne's Southern Cross station and yes it does seem quite expensive, I hasd a quick look as I passed thru this morning.

Not sure how long it has been there, but it can't be more than a month.http://www.southerncrossstation.net.au/ about the station, if anyones interested.

Cheers
DJ737
Melbourne, Australia

They have them at Melbourne Airport as well, in the international terminal.

The real problem with high prices at stations/airports/whatever is rent-seeking.

 

[starrymarkb]

I read in a book by a notable economist that the main reason was that rents on railway station units are sky-high. Now, that's all well and good if it's a Network Rail station (his example - London Waterloo - is) and they re-invest the surplus on the railway, but not all stations are

The vast majority are though. The shops pay rent to Network Rail regardless of the operating TOC

 

[Statto]

Do stores at Stations get rental charges by space used, or just same rent for everyone, as if it's the latter, i don't get why WH Smith prices are so high compared for the same products at Boots, in the same station.