WH Smith has been engaged in negotiations to divest its physical retail business for an extended period. Following the sale of 480 stores to Modella Capital for £76m, the well-known WH Smith brand, which has a history of over 230 years, will cease to be visible on the high street. The stores will undergo a rebranding process and be operated under the name TG Jones.

The sale excludes the more profitable travel locations situated in airports and train stations, allowing WH Smith to focus on expanding its successful travel business, consisting of approximately 1,200 outlets across 32 countries. The decision to offload the high street business, which currently contributes a small percentage of profits, aims to streamline WH Smith's operations and concentrate on the growth potential within the travel sector.

With aspirations to become a leading global travel retailer, WH Smith’s CEO, Carl Cowling, emphasized the strategic shift towards enhancing the travel business. The high street segment, employing around 5,000 individuals, will adapt to the new branding under the guidance of Modella Capital, known for its ownership of Hobbycraft and The Original Factory Shop. The stores will maintain the WH Smith name temporarily before transitioning to TG Jones.

The move to sell the high street division aligns with WH Smith’s evolving business strategy and future aspirations. Amid challenges faced by traditional retailers, such as increased taxes and operating costs, WH Smith is positioning itself for sustained success in the competitive retail landscape. The sale is anticipated to be finalized in the summer, led by Sean Toal, head of WH Smith's retail sector, signaling a significant transformation for the company's business operations.