It’s never been associated with great advertising, but somehow WH Smith is a brand that has a place in the nation’s heads, if not their hearts. Now the 233 year-old retailer has been sold to Modella Capital in a £76 million deal, and its 480 high street stores will soon be branded as TGJones.
Most people think of WH Smith the place they buy their newspapers and paperbacks at the railway station or airport, while trying to resist the rolling special offers on giant chocolate bars. The WH Smith brand will still be standing proud in these locations, of which it has 1200 in 32 countries. They make up 85% of its profits.
Modella, which bought another UK retail chain, Hobbycraft, last year, has chosen the new name to retain the “family feel” of WH Smith. It will continue to run as TGJones along the same lines, but is looking at options like selling off the digital greetings card business.
Carl Cowling, the group chief executive at WH Smith, said: “As we continue to deliver on our strategic ambition to become the leading global travel retailer, this is a pivotal moment for WH Smith as we become a business exclusively focused on travel.
“As our travel business has grown, our UK high street business has become a much smaller part of the WH Smith Group. High street is a good business; it is profitable and cash generative with an experienced and high-performing management team.
WH Smith had become a pretty faceless brand on the high street anyway, but the new name doesn’t look likely to change that any time soon. A good opportunity for advertising to make a difference.
