WH Smith High Street Stores Sold and Set to Rebrand as TG Jones
The historic WH Smith brand will exit the high street as 480 stores are acquired by Modella Capital for £76 million.
In a significant shift within the British retail landscape, WH Smith's high street store network, comprising 480 outlets, has been sold to private equity firm Modella Capital for £76 million.
This sale marks the end of the WH Smith name on the high street, as the stores will be rebranded as TG Jones.
The rebranding deliberately mirrors the legacy of WH Smith, which was established in London in 1792 by news vendor Henry Walton Smith and his wife, Anna.
WH Smith will retain its name for its travel outlets, which are located in airports, train stations, motorway service stations, and hospitals across the UK and 32 other countries.
The company currently generates 75% of its revenue and 85% of its trading profit from these travel operations, indicating a significant shift in focus away from its high street presence.
The high street division employs approximately 5,000 staff and will maintain its range of products and services, which include partnerships with the Post Office and Toys “R” Us. Modella Capital plans to work alongside the management team to define and implement strategies to introduce new offerings and product ranges in the future.
A spokesperson for Modella Capital expressed satisfaction at acquiring one of the UK's most iconic retail businesses, emphasizing the significance of WH Smith stores in various towns and cities.
The spokesperson noted that over one million customers visit these stores weekly, underscoring their importance in the high street retail space.
The spokesperson delineated that the initial period following the acquisition would be a handover phase, with business operations continuing as usual while new strategic initiatives are developed.
Modella Capital's recent acquisitions also include brands like Hobbycraft and The Original Factory Shop, with TG Jones now adding to its portfolio of over 800 stores.
Sean Toal, CEO of the new TG Jones operations, referred to the sale as a notable milestone for the WH Smith Group.
He expressed pride in the achievements of the high street team and noted the potential for future growth and innovation.
Industry experts have highlighted the potential challenges posed by the rebranding.
An investment director at AJ Bell indicated that the WH Smith brand had been crucial in maintaining customer loyalty amid declining foot traffic on the high street.
Without the recognizable brand, the newly named TG Jones may face difficulties in attracting shoppers unless it quickly implements effective strategies.
The Booksellers Association has voiced its concerns regarding the impact of losing a historic brand that has been pivotal in providing access to books, particularly in areas with limited public library services.
It reaffirmed its intention to collaborate with TG Jones to uphold WH Smith’s legacy of promoting literature.
WH Smith's CEO, Carl Cowling, commented on the transitioning focus toward travel retail, describing the current moment as pivotal as the company aims to become the leading global travel retailer.
He noted that the travel segment has significantly outperformed the high street division, prompting the strategic decision to divest the latter in favor of concentrating on travel operations, which he believes offer substantial growth opportunities in the coming years.
This sale marks the end of the WH Smith name on the high street, as the stores will be rebranded as TG Jones.
The rebranding deliberately mirrors the legacy of WH Smith, which was established in London in 1792 by news vendor Henry Walton Smith and his wife, Anna.
WH Smith will retain its name for its travel outlets, which are located in airports, train stations, motorway service stations, and hospitals across the UK and 32 other countries.
The company currently generates 75% of its revenue and 85% of its trading profit from these travel operations, indicating a significant shift in focus away from its high street presence.
The high street division employs approximately 5,000 staff and will maintain its range of products and services, which include partnerships with the Post Office and Toys “R” Us. Modella Capital plans to work alongside the management team to define and implement strategies to introduce new offerings and product ranges in the future.
A spokesperson for Modella Capital expressed satisfaction at acquiring one of the UK's most iconic retail businesses, emphasizing the significance of WH Smith stores in various towns and cities.
The spokesperson noted that over one million customers visit these stores weekly, underscoring their importance in the high street retail space.
The spokesperson delineated that the initial period following the acquisition would be a handover phase, with business operations continuing as usual while new strategic initiatives are developed.
Modella Capital's recent acquisitions also include brands like Hobbycraft and The Original Factory Shop, with TG Jones now adding to its portfolio of over 800 stores.
Sean Toal, CEO of the new TG Jones operations, referred to the sale as a notable milestone for the WH Smith Group.
He expressed pride in the achievements of the high street team and noted the potential for future growth and innovation.
Industry experts have highlighted the potential challenges posed by the rebranding.
An investment director at AJ Bell indicated that the WH Smith brand had been crucial in maintaining customer loyalty amid declining foot traffic on the high street.
Without the recognizable brand, the newly named TG Jones may face difficulties in attracting shoppers unless it quickly implements effective strategies.
The Booksellers Association has voiced its concerns regarding the impact of losing a historic brand that has been pivotal in providing access to books, particularly in areas with limited public library services.
It reaffirmed its intention to collaborate with TG Jones to uphold WH Smith’s legacy of promoting literature.
WH Smith's CEO, Carl Cowling, commented on the transitioning focus toward travel retail, describing the current moment as pivotal as the company aims to become the leading global travel retailer.
He noted that the travel segment has significantly outperformed the high street division, prompting the strategic decision to divest the latter in favor of concentrating on travel operations, which he believes offer substantial growth opportunities in the coming years.
