U.K. Retail Demergers Should Await Consumer, Analysts Say

A demerger of WH Smith Plc, a U.K. magazine retailer and stationer, Whitbread Plc, owner of the Costa Coffee chain, and the sale of electronics retailer Comet, owned by Kesa Electricals Plc, should wait until consumer spending recovers, analysts say.

Whitbread has looked at hiving off its Costa Coffee outlets, say analysts. Kesa said last week it is exploring ways of exiting its electrical retail chain Comet. WH Smith Chief Executive Officer Kate Swann told the Daily Telegraph newspaper in April that a demerger of its travel stores, which includes outlets at airports and trains stations, from the high street chain was a possibility.