WHSmith has announced the sale of its high street operations to Modella Capital, marking a significant shift in the retailer’s strategy. The deal, which includes approximately 480 stores located across high streets, shopping centres, and retail parks throughout the UK, will see the stores rebranded as TGJones.
As part of the acquisition, Modella Capital will maintain the existing product range and services, ensuring the stores continue to trade as normal. The private equity firm will work closely with Sean Toal, the new CEO of TGJones, to develop and implement a strategy aimed at introducing new product offerings and expanding the brand’s portfolio in the future.
The sale of its high street operations marks a pivotal moment for WHSmith, which has increasingly focused on its thriving global travel retail business. With over 1,200 stores across 32 countries, WHSmith’s travel division has become the company's primary growth engine, accounting for 75% of sales and an even larger share of profits. The transition reflects the changing dynamics in the UK retail market, where high street footfall continues to decline due to rising business rates, wage inflation, and increasing digitalisation.
Modella Capital, known for its success in reviving challenged brands, plans to focus on improving cost efficiency and profitability. The acquisition allows for greater flexibility, as WHSmith’s stores typically operate with short-term leases, presenting opportunities to streamline locations and potentially invest in those requiring significant refurbishments.
WHSmith will retain its high-performing travel retail stores, which include locations in airports, hospitals, railway stations, and motorway service areas across the UK, as well as its extensive operations in other international markets.
Photograph: Hazel Nicholson
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