WHSmith: The High Street's Big Goodbye
After a whopping 230 years, WHSmith is waving goodbye to the high street. Can you believe it? They've sold off their 480 UK high street stores to Modella Capital for ÂŁ76 million. This isn't just a little shuffle; it's a huge strategic shift for the company, putting all their eggs in the travel retail basket.
A New Chapter for Familiar Stores
Modella Capital – already the brains behind Hobbycraft and The Original Factory Shop – plans to rebrand those former WHSmith locations as TGJones. That means around 5,000 employees are moving under new ownership. It's a big change, but apparently, things will stay pretty much the same for shoppers in the short term. Post Office services and most of the current products will remain. A Modella spokesperson said TGJones aims to build on what’s already there, adding new product lines and generally making the shopping experience a bit more… well, enjoyable.
Travel: WHSmith's New Focus
This whole high street sell-off makes perfect sense when you look at WHSmith's travel business. It's been incredibly successful. Their airport, railway station, hospital, and motorway service area stores now make up a massive 75% of their revenue and a whopping 85% of their trading profit. And they're not slowing down; they're planning to open 15 new travel stores in the UK and a further 110 globally by the end of 2024. Talk about ambition!
The High Street's Changing Face
WHSmith's departure is a pretty clear sign of the tough times many brick-and-mortar retailers are facing. Declining footfall and the rise of online shopping have hit high street businesses hard. You only have to look at other retailers who've struggled recently to see how tough things have become. Honestly, who saw this level of change coming?
What's Next for WHSmith and TGJones?
WHSmith is now laser-focused on becoming a global travel retail giant. It’s a big, bold gamble, but their current success makes it feel like a smart move. TGJones, meanwhile, has a chance to breathe new life into those high street locations. They’re talking about new product ranges, a modern makeover, and generally aiming for a fresh feel. The future is certainly uncertain for both – but in a fascinating kind of way. It'll be interesting to see how both businesses fare.
