Shoppers passing by WH Smith's High Street storefront

Shoppers passing by WH Smith's High Street storefront.
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The iconic WH Smith name, a fixture in UK town centers since the Victorian era, is poised to vanish from the High Street as the company sells its stores to Modella Capital, the owner of Hobbycraft. The new ownership has announced that it will retain the Post Office outlets within many of the branches but will rebrand the High Street chain as TGJones.
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The WH Smith name will continue to be used at airport, railway station, and hospital locations that remain unsold. Modella will take control of 480 stores located in retail parks, shopping centers, and High Streets, employing around 5,000 staff. The firm promised that operations would remain "business as usual" during the transition, which will include expanding product offerings. The current 195 Post Office counters and Toys "R" Us concessions in WH Smith stores will remain intact. Modella has not disclosed any plans regarding potential job cuts following the acquisition. Specializing in retail and consumer markets, Modella Capital has previously invested in companies like Hobbycraft, Crafters' Companion, and The Original Factory Shop.
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The firm has chosen the name TGJones, reflecting a similar "family" ethos as that of WH Smith, which it regards as an "iconic" retail brand. WH Smith's inaugural store opened on Little Grosvenor Street in London, where the company became the leading distributor of newspapers. It launched its first travel retail outlet in 1848 at London's Euston Station, rapidly growing after World War II and expanding its product range. Throughout the 1970s, WH Smith embraced the era's style with its new brown and orange logo. For decades, the store catered to a wide audience, offering everything from back-to-school supplies to birthday cards, magazines, art materials, and sweets. As the personal computer era dawned, WH Smith attracted new customers eager to encounter cutting-edge technology during the 1980s. However, in recent years, it has faced challenges from budget High Street shops, supermarkets, and online retailers. Despite operating under its familiar blue and white logo, WH Smith garnered a reputation for being somewhat drab, culminating in the popularity of a social media account, WHS_Carpet, which humorously highlighted its less-than-ideal floor conditions. Carl Cowling, WH Smith's group CEO, described the £76 million sale as "a pivotal moment" for the company, allowing it to focus solely on its travel-related business. "High Street is a good business; it's profitable and generates cash with a skilled management team. However, in light of our swift international growth, it's the right time for new ownership to advance the High Street business," he stated. The travel division operates over 1,200 stores across 32 countries. Retail analyst Nicholas Found noted that WH Smith's travel branch has become its "engine room," accounting for 75% of total revenue and 85% of trading profit in 2024.

Not a valid attachment ID. He anticipates that the new ownership will focus on cost management and profitability, with many High Street locations requiring significant investment to improve their current condition. Catherine Shuttleworth from the retail consultancy Savvy indicated that maintaining the chain could serve as "a lifeline" for many High Streets. She mentioned potential opportunities for Hobbycraft to expand into High Street retail, tapping into a younger demographic seeking crafting inspiration. Financial expert Susannah Streeter from Hargreaves Lansdowne remarked that establishing the new branding will take time. "It will need to resonate with the British public, and many will lament the loss of a beloved High Street brand that has been a shopping cornerstone for over two centuries. Nonetheless, there will undoubtedly be intrigue about how the new owners aim to rejuvenate sales and offer competitively priced products to help the chain regain its footing.

BBC News

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