WH Smith’s high street stores will be rebranded as TGJones after a £76m sale.
All 480 WH Smith high street stores are being sold to investment company Modella Capital – but the WH Smith brand is not part of the sale.
The company explained the decision had been made after that part of the business had become a smaller part of the WHSmith Group. In the financial year ending 31st August 2024, 75% of the group’s revenue and 85% of its trading profit came from its travel business, of which the company has 1,200 travel stores across 32 countries. These will remain under the name WH Smith.
Following the high-street sale, WH Smith explained it had a “clear strategy” for the travel business, focusing on four key areas including increasing spend per passenger; optimal use of space; space growth in new and existing markets; and growth of passenger numbers.
The new name has been deliberately chosen as an homage to the original brand, which was founded in London in 1792 Henry Walton Smith and his wife Anna.
The high-street business employs roughly 5,000 people across 480 stores. All stores, colleagues, assets and liabilities of the high-street business will move under Modella’s ownership as part of the sale.
Under Modella, the business will be led by Sean Toal, who is currently CEO of the high-street business. According to the retailer, the high-street business will operate for a short transitional period under the WH Smith brand while the business rebrands as TGJones.
Toal said he was “delighted that we have agreed a sale with Modella Capital who, I know, will be supportive new owners”, adding: “I’m incredibly proud of everything we’ve achieved as a high-street team and this next chapter presents exciting opportunities for growth, innovation and continued success for the business and our talented colleagues.”
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Carl Cowling, WH Smith chief executive, said: “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WH Smith as we become a business exclusively focused on travel.
“We have a highly successful travel business, operating in fast-growing markets in 32 countries and we are constantly innovating to deliver strong returns and meet our customers’ and partners’ needs. Our travel business currently accounts for around 75% of the group’s revenue and 85% of its trading profit. With the ongoing strength in our UK travel division, and the scale of the growth opportunities in both North America and the rest of the world, we are in our strongest-ever position to deliver enhanced growth as we move forward as a pure-play travel retailer.
“As our travel business has grown, our UK high-street business has become a much smaller part of the WH Smith Group. High street is a good business; it is profitable and cash generative with an experienced and high-performing management team. However, given our rapid international growth, now is the right time for a new owner to take the high-street business forward and for the WH Smith leadership team to focus exclusively on our travel business. As we look forward as a simplified, travel-focused group, I am excited about the group’s future prospects. With a clear strategy, a strong balance sheet, and operations in high growth and attractive markets, we are well-positioned to generate substantial growth and value for all stakeholders.”
Meryl Halls, managing director of the Booksellers Association said: “It is always a moment of sadness when a historic brand leaves the high street, especially when like WH Smith they bring books to communities with few other means to access them. Through their commitment to selling books and extensive charity work, WH Smith has for centuries served communities around the UK – many of which have lost access to public libraries in recent years.
“Alongside continuing our existing relationship with WH Smith Travel, we intend to work with TGJones to continue WH Smith’s legacy of promoting reading by keeping books in their shops, on the high street and in the hands of local readers.
“We also encourage the government to see this situation as an indication that further high street investment is essential to the health and longevity of our town centres. Positive actions such as business rates reform, tenant protection and creative partnerships to reinvigorate our retail and leisure spaces will help keep high streets vibrant, diverse and viable locations for bookshops – from national chains to local independents – to thrive.”
