WHSmith stores are disappearing from UK highstreets following the decision of the company to sell their entire highstreet division to Modela Capital for 76 million PS.
The deal announced Friday will see 480 locations in high streets, shopping centres, and retail parks rebranded under the TG Jones brand, ending WHSmith’s presence on Britain’s high street after over two centuries.
The sale will allow WHSmith’s travel retail division to grow, and become the main driver of revenue and profits for the company.
WHSmith shops in hospitals, airports and train stations will remain under the existing name.
Carl Cowling (WHSmith CEO) described this move as a pivotal moment for the company, as the focus of the business is now solely on travel retail.
As our UK travel business grew, the UK high-street business became a smaller part of WH Smith Group. He said that high street was a profitable business with a cash-generating management team.
However, due to our rapid growth on the international stage, it is now the perfect time for a brand new owner of the business in the high-street.
WHSmith high-street stores: a new chapter
Modela Capital will assume control of WHSmith’s High Street business, under the name TG Jones. The firm also owns HobbyCraft.
Customers have been assured that stores, such as this Post Office, will continue to offer the same services and products.
Modela said that the name TG Jones had been chosen because it was a “worthy succession” of WHSmith. It carries a sense of “family” and reflects its position in local communities.
In a bid to dispel rumours that the firm might consider closing stores, it also reaffirmed its commitment towards high-street shopping.
This deal is structured in a way that eliminates all debt and cash. It comes at a time when high-street retailers are struggling to compete with online retailing and increasing operational costs.
The recent collapse of large chains like Debenhams or Topshop has highlighted the difficulties faced by brick and mortar stores.
WHSmith’s transformation into a global travel retailer
WHSmith, a UK-based family newsagent founded in 1792, has been a mainstay of UK high streets for many years.
The FTSE 250 has shifted its focus to international travel retail over the last decade. Its presence was expanded through acquisitions, such as Marshall Retail Group’s $400 million US purchase in 2019.
The move away from high-street retail was anticipated. WHSmith confirmed in January it had entered into talks with a buyer to sell its division.
Sales and profit are now dominated by the company’s Travel Retail segment. This includes airports, trains stations and hospitals in multiple countries.
The legacy of WHSmith in the travel retail sector will continue to exist even though the WHSmith name is no longer on high streets.
The first store devoted to travel opened in London’s Euston Station in 1848. This business model has grown into WHSmith’s primary source of income.
The sale of WHSmith to become a travel retailer is expected to close later in the year. This marks an end of an era of one of Britain’s most enduring high-street names.
The post WHSmith will disappear from UK high streets after 200-year span following PS76M Sale to Modela Capital might be updated as new developments unfold.
