After nearly two centuries, the familiar WH Smith name is poised to disappear from Gloucester city centre. An application to rebrand the Eastgate Street store has been submitted to the city council, marking a significant change for the historic retailer.
WH Smith is progressing smoothly towards finalizing the sale of its UK high street chain to Modella Capital, the current owner of Hobbycraft, with completion expected by the end of the month. The £76 million deal, agreed upon in March, will see approximately 480 stores and around 5,000 employees transition under Modella Capital’s umbrella.
As part of the rebranding, the Gloucester branch, located at the entrance to Kings Walk shopping centre, will replace its WH Smith signage with that of the new brand, TGJones. According to the planning application, the signage swap will be “like for like” in size, color, and fixing points, ensuring no additional structural changes are necessary.
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While the high street segment faces transformation, WH Smith’s travel division continues to thrive. In the quarter ending May 31, the travel arm—encompassing shops in airports, train stations, and hospitals—reported a 5% increase in like-for-like sales. Though official figures for the high street operation’s third quarter were not disclosed due to the impending sale, the half-year results in April revealed a 25% drop in profits to £20 million.
The company’s travel outlets performed robustly across various regions: the UK travel division saw a 6% hike in like-for-like sales in the third quarter, with airport locations outpacing others at a 7% rise. New initiatives include the launch of the Smith Family Kitchen coffee concept at an airport and a standalone bookshop.
In North America, the travel network experienced a 2% boost in comparable store sales and a 7% increase on a total and constant currency basis. Other international locations recorded an impressive 7% growth in like-for-like sales and a 12% surge overall on the same basis.
WH Smith emphasized its preparedness for the upcoming peak summer trading season despite ongoing economic and geopolitical uncertainties. The strategic exit from the high street reflects years of declining sales and profits in that division, even as the travel business has emerged as the company’s dominant revenue and profit contributor, operating over 1,200 stores in 32 countries.
Modella Capital, the buyer, is a specialist investor in retail businesses with a record that includes Paperchase, Tie Rack, and, most recently, Hobbycraft. The history of WH Smith dates back to 1792 when the first newsagent by the Smith family was opened, ultimately forming the company WH Smith in 1828.