WH Smith Sells UK High Street Stores in a £76 Million Deal and Shifts Focus to Expanding Travel Business Worldwide

WH Smith, a longstanding staple in British town centers, will soon vanish from the high street for good.

The retailer has officially sold its UK high street chain in a £76 million deal, marking the end of an era for the beloved British brand.

As part of the sale, stores will be rebranded as TGJones, under the ownership of Modella Capital.

Modella is the parent company of Hobbycraft and The Original Factory Shop, and it is also eyeing the acquisition of Lakeland.

The Deal and What It Means for High Street Locations

While the sale impacts WH Smith’s high street presence, it does not include the company’s travel outlets located in airports and train stations.

These locations will remain under the WH Smith name, continuing to operate as the familiar brand that many travelers rely on.

However, the 480 stores and approximately 5,000 staff associated with the high street business will now be part of Modella Capital’s portfolio, with the stores undergoing a rebranding to TGJones.

Carl Cowling, the chief executive of WH Smith, shared that this sale was a significant step in the company’s strategy to focus entirely on the growing travel retail sector.

“As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WHSmith,” Cowling explained.

“Our travel business has grown, and the high street business has become a much smaller part of the group.

Now is the right time for a new owner to take the high street business forward, while we concentrate on travel.”

Struggling High Street Business and the Shift to Travel

The shift comes after WH Smith’s high street operations faced mounting challenges.

In January 2025, the company reported a 6% drop in high street sales during the critical Christmas season.

This was down by 3% on a like-for-like basis.

Despite this, WH Smith’s travel outlets in airports, railway stations, and hospitals delivered strong performance, with sales rising 6% on a like-for-like basis.

The high street sector now only represents around 15% of the company’s annual trading profits, with the travel division overtaking it in recent years.

WH Smith has been focusing on international growth, particularly in North America, where its travel business has been expanding rapidly.

Impact of the Sale and the Future of WH Smith

WH Smith had already hinted at the possibility of selling its high street operations, and this deal formalizes that direction.

Although the high street business has been profitable, it faces growing challenges, including the rising wage costs predicted by the recent UK Budget announcements, which are expected to increase its wage bill by £20 million.

In addition to the sale, WH Smith also plans to close 17 more high street stores in 2025, following the closure of 14 stores in the previous year.

As the company moves forward with its travel-focused strategy, the leadership team is now set to focus solely on the international expansion of its travel outlets, while TGJones takes over the day-to-day management of the high street locations.

Looking Ahead: A New Chapter for WH Smith

The shift away from the high street marks a significant transformation for WH Smith, which has been a part of British retail for decades.

As the company embraces its future as a travel retailer, many will be watching closely to see how Modella Capital handles the rebranding of the high street stores and how WH Smith continues to build its global presence in the travel sector.