End of an Era: WH Smith Rebrands as TGJones After Sale to Modella Capital

WH Smith, a historical retail staple in the UK since the 1790s, is set to lose its iconic presence from High Streets as it has been sold to Modella Capital, known for owning Hobbycraft. The sale covers 480 stores and around 5,000 staff, with the new owner planning to rebrand these locations under the name TGJones. Notably, the WH Smith name will continue to be utilized in airports, train stations, and hospitals where the branches are not included in the sale.

Modella Capital intends to retain the Post Office services within the stores and will maintain the existing Toys ‘R’ Us concessions. Although no official statements regarding job security have been made, retail analysts predict Modella will scrutinize the acquired stores’ performances closely. Modella has a history of investing in consumer businesses, further raising speculation about the direction the new management will take.

WH Smith has seen a declining reputation in recent years, characterized by outdated store aesthetics and declining sales amid stiff competition from discount retailers and online shopping. The company’s chief executive, Carl Cowling, referred to the sale as a significant shift, allowing WH Smith to concentrate on its thriving travel sector, which has become the primary revenue driver, accounting for 75% of the group’s revenue.

Retail economists suggest the move could provide vital continuity for High Streets, as new ownership allows for potential revitalization through fresh product offerings and a focus on customer experience. While the rebranding to TGJones may take time to resonate with consumers, there is hope that the transition can attract a younger demographic, particularly with crafting interests inspired by Hobbycraft.