WH Smith has officially exited the UK high street after 233 years, agreeing to sell its high street chain to Modella Capital, the owner of Hobbycraft, for a valuation of £76 million. This significant move marks the end of an era for the iconic retailer, which first opened its doors in London in 1792.
The deal, confirmed on March 28, 2025, does not include the WH Smith brand or its travel locations, which have become the primary focus of the company in recent years. Instead, approximately 480 high street stores and their 5,000 employees will transition to Modella Capital's ownership, with plans to rebrand these outlets as TGJones.
Modella Capital, known for investing in retail businesses, has previously acquired chains such as Paperchase and Tie Rack. The firm stated that the TGJones brand embodies a "family" feel similar to that of WH Smith, which it described as an "iconic" retail business. The rebranding will ensure that customers continue to find familiar products and services, including offerings from the Post Office and toys from Toys R Us, but under a new name.
As WH Smith shifts its focus to its travel division, which operates more than 1,200 stores across 32 countries, the high street segment has become a smaller part of its overall operations. Group chief executive Carl Cowling remarked, "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."
Despite the sale, WH Smith will retain a significant presence in the travel sector, with around 1,300 stores remaining under its branding in airports and train stations. The company has indicated that it will maintain an online presence as well.
The decision to sell the high street business follows a period of uncertainty for WH Smith, which has faced increasing pressure from online retailers and supermarkets that have encroached on its customer base. In January 2025, the company announced it was seeking to divest its high street operations after a strategic review revealed that these outlets were no longer aligned with its growth objectives.
Historically, WH Smith has been a staple of British retail, evolving from a small news vendor to a national chain. William Henry Smith took over the business in 1812, and under his leadership, it expanded significantly, launching a circulating library service and a publishing operation. The company went public in 1948, and the Smith family remained involved in its management until the last family member left the board in 1996.
In the years that followed, WH Smith underwent a series of transformations, including the demerger of Smiths News in 2006 and the acquisition of travel tech retailer InMotion in 2018. However, despite its strong brand recognition, the company struggled to compete with the rise of e-commerce, which has fundamentally changed the retail landscape.
The sale to Modella Capital represents a decisive shift in strategy for WH Smith, allowing it to concentrate on its more lucrative travel operations. Cowling expressed optimism about the future, stating, "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."
As the transition unfolds, WH Smith's high street stores will undergo a rebranding process, with the name TGJones expected to appear after a short transitional period. While the WH Smith name will fade from the high street, the company aims to retain its core customer base through its travel outlets, which have proven resilient amid changing consumer habits.
The sale comes at a time when many high street retailers are grappling with similar challenges. WH Smith joins a growing list of iconic brands that have had to adapt or divest as the retail environment evolves. Modella Capital's acquisition of WH Smith's high street business is seen as a strategic move to revitalize these stores and align them with current consumer preferences.
In summary, the departure of WH Smith from the UK high street marks a significant moment in retail history, as the brand that has served customers for over two centuries transitions to a new chapter focused on travel. The rebranding to TGJones is not just a name change; it reflects the changing dynamics of retail and the need for businesses to innovate and adapt in a competitive market.
