WHSmith has confirmed the sale of its UK high street retail business to Modella Capital in a £76 million deal, marking a significant shift as the company focuses exclusively on its global travel retail operations.

The agreement will see around 500 WHSmith stores — which have formed part of the British high street for over 230 years — eventually rebranded as TGJones, with a short transitional period operating under the WHSmith name.

Focus Shifts to Travel Retail

The sale reflects WHSmith’s strategic pivot towards its more profitable travel division, which includes shops located in airports, train stations, and hospitals across 32 countries. This division now accounts for 75% of the group’s revenue and 85% of its trading profit.

Group Chief Executive Carl Cowling described the move as a “pivotal moment” for the business:

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

High Street is a good business — it is profitable and cash generative — but given our rapid international growth, now is the right time for a new owner to take the High Street business forward.”

What the Deal Includes

WHSmith said the transaction includes all stores, employees, assets, and liabilities of the high street business. All operations will transfer to Modella Capital, a private investment firm, which will rebrand the business as TGJones in due course.

While no immediate store closures have been announced as part of the sale, WHSmith had previously revealed plans to close 15 stores in the coming months as part of a broader restructuring of the high street arm.

A Historic Shift

WHSmith opened its first store in 1792, growing to become one of the most recognisable names on the British high street. However, in recent years, declining footfall and changing consumer habits have seen its high street segment shrink in profitability, making up just 15% of the group’s annual trading profit.

Looking Ahead

Cowling added:

“With a clear strategy, a strong balance sheet, and operations in high growth and attractive markets, we are well-positioned to generate substantial growth and value for all stakeholders.”

As WHSmith evolves into a travel-only retailer, the future of its iconic high street presence will now lie in the hands of Modella Capital.

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