WH Smith Boosts Reserves of Stationery for Disruptive Brexit

(Bloomberg) -- WH Smith Plc has boosted reserves of stationery in the U.K. in case ports become jammed due to Brexit, joining a host of other consumer-products companies stockpiling to prepare for disruption.

The retailer will hold five to six months worth of stationery rather than the typical level of three to four months as a result of uncertainty surrounding Britain’s exit from the European Union. Such products, which include pens, notepads and diaries, are sourced mostly from Asia.

“We’re used to holding quite a bit of forward cover in terms of stock anyway, so what we’ve done is topped that up a little bit to put ourselves in an even better position should there be congestion at ports,” Chief Executive Officer Stephen Clarke said by phone.

Beyond stationery, the majority of WH Smith’s goods are sourced domestically, such as magazines, newspapers and books, so the company is well positioned for Brexit, Clarke said. This comes as publishers and paper manufacturers stockpile newsprint and ink to avoid supply disruptions and hedge against the risk that imported goods become more expensive if the pound weakens further.

To contact the reporter on this story: Ellen Milligan in London at emilligan11@bloomberg.net

To contact the editors responsible for this story: Eric Pfanner at epfanner1@bloomberg.net, Thomas Mulier, John Lauerman

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