TG Jones Takes Over WH Smith High Street Stores Amidst Gradual Rebranding and Expansion Plans
TG Jones took over WH Smith’s high street stores six months ago, with shoppers noting that the layout and product mix remain largely unchanged and branding is similar, leading some not to notice the name change.
Modella Capital acquired WH Smith's high street arm in June for up to £40 million, with a £12 million discount applied at the last moment due to softer trading conditions. Half the purchase price is contingent on trading performance through August of the following year.
The travel retail arm, WH Smith, continues to operate separately and remains listed on the London Stock Exchange, focusing on locations such as airports, stations, and hospitals. Its share price recently declined following accounting issues at its US operation.
Modella plans to develop TG Jones into the "hub of the high street," aiming for approximately 500 outlets. These stores will combine post offices and banking services with a wider range of learning, play, and reading products. Expansion efforts prioritize north-east England and the East Midlands.
As part of the rebranding and refurbishment process, only 14 of 456 TG Jones stores have been revamped so far, with 10 additional refurbishments planned. These upgrades will introduce more post offices and branded sections from partners such as Claire’s, Hobbycraft, and Toys R Us. Toys R Us currently features in 115 stores and is expected to be present in over 250 by 2027. Hobbycraft sections are also set to reach about 250 stores by that time.
Since the deal was announced in March, 24 TG Jones stores have closed, including 9 closures after the June completion. Shopper feedback indicates that many items are cheaper elsewhere, such as in supermarkets, The Range, Poundland, and Waterstones. The cost of cards and stamps additionally influences purchasing decisions, and the convenience of alternative shopping locations reduces the appeal of TG Jones for some customers.
