Waterstones 4x profit growth: An RTO case study

As workers return to offices in major UK city centres, the ripple effects on surrounding businesses have been profound. Waterstones, the renowned bookseller, serves as a compelling example of how this shift is reinvigorating urban economies can transform retail performance.

Waterstones’ post-pandemic revival

During the financial year ending in April 2024, Waterstones nearly quadrupled its pre-tax profits, surging from £11.2 million to £42.9 million. The return-to-office movement, particularly in London, was a pivotal driver of this growth. With increased footfall from office workers and tourists, the retailer also reported a significant revenue increase, climbing from £452.4 million to £528.3 million.

Waterstones leveraged this renewed urban vibrancy by addressing internal challenges. After resolving operational issues with its warehouse system, the company streamlined costs, allowing it to enhance its profitability even further.

A response to changing consumer behaviour

Waterstones successfully capitalised on the return-to-office trend by enhancing its retail presence and focusing on staff development. Recognising the renewed urban footfall from returning professionals, the retailer invested in improving the standards of bookselling through targeted training and career development. These efforts ensured a consistently high-quality experience for both new and returning customers.

Additionally, Waterstones expanded its digital footprint by integrating platforms like Blackwells.co.uk and Wordery.com, which allowed it to cater to a broader audience beyond those visiting physical stores. This dual strategy of leveraging in-store appeal and online accessibility positioned Waterstones to thrive in a landscape revitalised by office workers’ return.

The surge in footfall also reflected a broader cultural shift: an increasing appreciation for physical bookshops, amplified by social media trends and positive press coverage. This cultural momentum, combined with the economic boost from returning professionals, played a vital role in Waterstones’ success. Insights for Office Space Providers and Urban Retailers.

Lessons from Waterstones

1. Footfall drives retail 📈: Urban areas thrive on consistent office attendance, creating opportunities for partnerships with local businesses.
2. Adaptability is 👑: Addressing operational challenges and aligning with consumer trends are essential for success in a post-pandemic world.
3. Quality over quantity 💎: Investments in high-quality offerings—whether in products, services, or spaces—drive long-term success.
4. Attendance can fuels recovery ❤️🩹: The return of professionals to city workplaces is a critical driver of economic activity, revitalising urban centres and benefiting retailers and service providers alike.

Final Thoughts

Waterstones’ performance underscores the critical role of the return-to-office trend in revitalising urban retail. For businesses navigating this evolving landscape, the key takeaway: align with the cultural and economic shifts driven by workplace trends.

For further insights on how London businesses are navigating workplace attendance and its broader impact, see RTO: How London is approaching office attendance across sectors.

For office providers looking to maximise occupancy and market appeal through strategic positioning, consider the guide Office Space Marketing in 2025: How Leading Spaces Are Maximising Occupancy.

To understand how organisations balance office attendance policies to maintain engagement and productivity, check out The Office Policy Balance: The Key to Maintaining Employee Engagement and an Effective In-Office Attendance Policy.