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WHSmith Bids Farewell to the High Street
After over 230 years, a chapter closes for WHSmith. The iconic British retailer is leaving the high street, selling its 480 UK high street stores to Modella Capital for £76 million. This significant move marks a strategic shift for WHSmith, which will focus solely on its thriving travel retail business.
A New Era for High Street Stores
Modella Capital, already owner of Hobbycraft and The Original Factory Shop, plans to rebrand the acquired WHSmith stores as TGJones. The transition will see approximately 5,000 employees move under the new ownership. While the rebranding is underway, products and services, including Post Office services, will remain largely unchanged. A spokesperson from Modella stated that TGJones aims to build on the existing business by introducing new product ranges and enhancing the shopping experience.
WHSmith's Focus on Travel
This decision reflects WHSmith's increasingly successful travel retail operations. The company’s travel stores in airports, railway stations, hospitals, and motorway service areas will continue, representing 75% of revenue and 85% of trading profit. WHSmith plans to expand its travel presence further, with plans to open 15 new stores in the UK and 110 globally by the end of 2024.
The Changing Landscape of Retail
WHSmith's departure from the high street is a reflection of the wider challenges facing brick-and-mortar retailers. Declining footfall and the rise of e-commerce have put significant pressure on high street businesses. This trend is evident in the recent struggles of other retailers. The closure of WHSmith's high street arm underlines the ongoing transformation of the retail landscape.
What's Next for WHSmith and TGJones?
WHSmith will now concentrate its efforts on its travel business, aiming for global dominance in that sector. TGJones, on the other hand, has an opportunity to revitalise the familiar high street locations, adding new products and potentially bringing a fresh, modern appeal to these established stores. The future remains exciting but uncertain for both companies as they embark on these distinct, yet related, paths.
