The iconic British retailer shifts focus to travel business amid rebranding.
In a significant move for the retail sector, WH Smith has announced the rebranding of a number of its shops in northern England and the north-east. This decision comes as part of a larger strategy to streamline operations and focus on its travel business, which has proven to be more lucrative in recent years.
The company has agreed to sell all 500 of its High Street shops in a deal valued at £76 million, marking a pivotal shift in its business model.
Details of the acquisition
The 233-year-old British retailer has reached an agreement with Modella Capital, which will see the stores transformed into TG Jones outlets.
This rebranding is expected to affect 11 WH Smith locations across Aberdeenshire and the Highlands, including five shops in Aberdeen and three in Inverness. The transition reflects a broader trend in retail where traditional high street shops are increasingly being replaced by specialized brands that cater to specific markets.
Strategic shift towards travel
WH Smith’s CEO, Carl Cowling, emphasized that the company will now concentrate exclusively on its travel business, which currently accounts for an impressive 75% of its revenue. This strategic pivot comes as WH Smith has been gradually moving away from town centers, focusing instead on more profitable ventures such as airport and railway station retail. Cowling stated, “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.”
Future prospects for WH Smith
As WH Smith transitions to a travel-focused group, the future looks promising. The company aims to simplify its operations while enhancing its presence in the travel retail sector. The rebranding initiative is not just about changing names; it represents a fundamental shift in how WH Smith positions itself in a competitive market. The stores that will continue to operate under the WH Smith name will include those located in airports, rail stations, and motorway services, ensuring that the brand remains visible in key travel locations.
This rebranding effort is part of a broader strategy to adapt to changing consumer behaviors and preferences. As more shoppers turn to online platforms and specialized retailers, traditional high street shops face increasing challenges. WH Smith’s decision to pivot towards travel retail is a response to these market dynamics, aiming to secure its place as a leader in this niche.
