It's been a while since consumers across America started cutting back on discretionary spending to cope with rising inflation.

A March YouGov report reveals that a financial outlook strongly shapes intentions to reduce spending. For example, it explains that consumers who expect their financial situation to worsen are more likely to cut back on clothing purchases.

The U.S. Department of Commerce also noted that clothing store sales dropped another 0.7% month over month at the end of December 2025.

I recently reported how WH Smith, owner of several Las Vegas Strip clothing stores, including the Marshall Rousso and Misura brands, is quietly shutting down 26 retail locations. The ongoing decline in Las Vegas tourism, with visitors gambling more and shopping less, has left many high-end resort boutiques feeling squeezed.

However, WH Smith's regulatory filings reveal a much bigger move: a full-scale continental retreat, triggered by a multi-million-dollar corporate scandal.

WH Smith plans to exit North American fashion 

Within the full WH Smith/MRG fashion portfolio on the Strip, the main apparel brands include Marshall Rousso and Misura, as well as Paradiso Carina and The Dean. 

Yet the company is closing all of its fashion stores on the Las Vegas Strip due to declining sales, and the corporate giant even plans to exit the North American fashion and specialty-store market entirely. 

According to the company's official 2025 Preliminary Results Announcement on the London Stock Exchange, the retailer is completely abandoning its resort apparel formats to execute an enhanced focus strictly on airport and travel convenience stalls.

WH Smith also announced the following priorities to deliver profitable growth and enhanced return on capital: 

• Expanding UK Travel essentials, health and beauty, and food-to-go offering

• Strengthening focus on North America travel essentials

• Exiting North American fashion and specialty stores and reviewing InMotion North America portfolio

• Strengthening core ROW markets, driving new growth through franchise model, reviewing and exiting non-core markets
  Source: WH Smith announcement  

Why WH Smith is exiting the U.S. entirely 

Weak sales are not the only reason for WH Smith's North American retreat.

An independent investigation conducted by Deloitte LLP revealed that the company's North American division had been systematically overstating its supplier income and promotional rebate revenues. 

The official Deloitte Review indicates that the division ignored company rules for counting money received from suppliers, making it look as if the division was bringing in far more cash than it actually was.