WHSmith, the iconic British retailer, is set to undergo a significant transformation as it sells its high street business to Modella Capital, the owner of Hobbycraft, in a deal valued at £76 million. This move will result in the rebranding of approximately 480 WHSmith stores across the UK, including those in Norwich, Sheringham, Great Yarmouth, King's Lynn, and Thetford, to the new name TGJones.
The deal, announced on March 28, 2025, marks a pivotal moment for WHSmith, which has been a staple on British high streets for over 230 years. While the sale includes all high street locations, it notably excludes the company’s travel retail outlets, which remain a central focus for the group. Locations such as WHSmith shops in airports and train stations, including the branch at Norwich train station, will continue to operate under the WHSmith brand.
Group Chief Executive Carl Cowling highlighted the strategic shift in the company’s focus, stating, “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith as we become a business exclusively focused on travel.” He emphasized that while the high street business is profitable and cash generative, the rapid growth of WHSmith’s international travel operations necessitated this change.
With this sale, approximately 5,000 employees currently working at the high street locations will transition to Modella Capital’s ownership. Cowling acknowledged the experienced management team behind the high street operations, expressing his hope for their continued success under new ownership. He remarked, “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.”
The decision to divest from the high street sector comes in response to the declining sales in physical retail spaces, which have been overshadowed by the booming trade in travel-related retail. WHSmith has increasingly focused on its travel business, which has expanded to over 1,200 stores across 32 countries, generating approximately 75% of the company's revenues and 85% of its trading profit.
Analysts have raised concerns that the transition to TGJones could lead to the closure of nearly half of the high street stores, a significant change for a brand that has been synonymous with British retail. Cowling, however, remains optimistic about the future, stating, “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.”
WHSmith's travel business has proven to be resilient, with a focus on increasing passenger spending and optimizing store space. The company aims to leverage the anticipated growth in air travel over the next 25 years and invest in airport infrastructure to enhance customer experiences.
The sale of the high street division also opens the door for WHSmith to explore strategic options for its online greeting card business, Funkypigeon.com, which is not included in the sale. Cowling indicated that the company would consider potential sales or other strategic moves for this unit as well.
As WHSmith transitions to a travel-focused retailer, the company is poised to capitalize on its strong market position and the growing demand for travel retail. Cowling concluded with a positive outlook, stating, “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.”
This rebranding marks the end of an era for WHSmith on the high street, but it also signifies a new chapter in its evolution as a leader in travel retail. As the company shifts its focus, many will be watching closely to see how the new TGJones brand develops and how it impacts the communities that have long relied on WHSmith for their retail needs.
