The Sale of 480 WHSmith Stores Completes This Month: A Pivot in the Retail Industry
WHSmith, a global retail chain known for its extensive assortment of stores, announced the sale of its 480 high street stores to an open-entered British brand, Modella Capital. This move marks a significant change in the retail landscape, as WHSmith will disappear from British high streets altogether, a move that pleases retailers and flash DNA. The stores will be replaced with new stores under the TGJones brand, which shares WHSmith’s colors, inspiration, and relentless commitment to lasting customer value.
The transaction is set to kick off by the end of June, with Modella Capital owner Carl Cowling expressing it as a “pivotal moment” for WHSmith. He also highlighted the 5% like-for-like sales increase of WHSmith’s travel division, which operates in fast-growing markets such as global airports, train stations, and hospitals. In March, WhSmith leader Wilko.endTime the sale, injecting financial uncertainty into the retail sector.
The brand’s current high street business faces a challenging few years, with its travel division contributing 75% to its revenue and 85% to its profit margin. The chain has over 580 travel stores across fluctuating business hubs like airports, railways, and hospitals, with the aim of becoming a global travel presence.
WHSmith’s recent timeline includes plans to open 15 new branches across these key locations by the end of 2024, currently accounting for over 20% of its total travel portfolio. Meanwhile, Modella has prior visited the))* Travel Industry’s 2024 tone shifts, with retailers increasingly moving from high streets to retail parks offering greater convenience.
WHSmith has reportedly roved up iconic British stores before, including Hobbycraft, which it bought out. With interest from large pension funds like Alteri Investors and HMVowner Doug Putman, Modella is making a concerted effort to secure its 480 stores through strategic acquisition.
At the same time, Modella has announced plans to sell around 20 stores annually over the next three years, who will close 20 notable independent stores annually across the high street. This shift comes just a few years afterWilko’s sudden collapse, href="https://www(pa.org.uk/our-agency/news ulnderstand-and-damage-neutral stores, with 360 new jobs created.
WHSmith’s rearmour for success has been met with mixed reactions. While rich with new initiatives to deal with closures and reevaluate brand value, the company has seen significant profitability improvements in its travel business.
In light of its strategic move, consumers and employees will be making adjustments. They can expect to realize increased brand value and access new opportunities for growth, but broader reshaping of the retail landscape remains to be seen.
The sale of WHSmith’s high street stores to Modella Capital is a pivotal decision that will deeply impact the company’s future, while reshaping the retail industry’s strategies for both brand revalueation and customer engagement.
