WH Smith sells high street stores and ends 233-year legacy
- WH Smith's high street stores were sold to Modella Capital for £76 million.
- The sale signifies the end of WH Smith's 233-year presence on UK high streets.
- Changing consumer habits and the pandemic contributed to the divestment decision.
In a significant shift for the UK retail landscape, WH Smith, a retailer with roots dating back to 1792, experienced a paradigm shift when it sold its high street segment to Modella Capital for £76 million. This sale effectively marks the extinction of WH Smith's storied presence on the high streets of the UK, a presence that had endured for over two centuries. The transaction not only reflects changing retail dynamics but also highlights a growing trend of iconic retailers disappearing from traditional shopping settings. The sale included approximately 480 stores, which are set to be rebranded as TG Jones. Despite WH Smith maintaining a robust portfolio of over 1,200 travel stores – primarily located overseas – the high street division had been struggling under the previous ownership, which had failed to adapt to modern retail conditions. The decision to divest this portion of the business was driven by a combination of factors including changing consumer buying habits, the impact of online shopping, and the financial stresses exacerbated by the COVID-19 pandemic that forced many retailers into challenging situations. As WH Smith transitions away from the high street, it joins a growing list of well-known retailers that have fallen by the wayside in recent years. Debenhams, once a flagship department store chain, permanently closed in May 2021 due to a deterioration in profitability and retail viability, struggling to compete as shoppers increasingly favored online transactions. Similarly, Woolworths, once a beloved high street staple, disappeared in 2009 following a rapid decline marked by both financial issues and changing shopping preferences. The introduction of TG Jones as the new branding for former WH Smith locations has raised questions about the future of retailing on high streets, especially given the contentious environment of post-pandemic economic recovery. While the transaction has led to discussions about the health of the UK high street, it carries an implicit reminder of the fragility of retail enterprises that cannot keep pace with evolving consumer preferences. Despite the loss of renowned names, there remains potential in the high street market if new ownership can successfully revamp and invigorate these stores.