WHSmith growth plans in focus after £76 million sale of high street stores

13 April 2025, 09:26

Windsor, Berkshire, UK. 4th April, 2025. A WHSmith store in Windsor. The BBC has reported that 'The name WH Smith, a staple of UK town centres since the Victorian era. Picture: Alamy

By Danielle de Wolfe

Investors in WH Smith will be keen for more details on its strategy after agreeing to sell its UK high street stores.

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It follows last month's takeover by Hobbycraft owner Modella Capital, which is set to buy its high street arm for around £76 million.

It's reported that the potential impact of US tariffs is also being taken into consideration ahead of the retail firm updating the market next week.

It has been a busy start to 2025 for the historic retailer as it has pivoted to focus solely on its growing travel store business.

On Wednesday April 16, WH Smith will update shareholders on its trading for the past six months in its first major update since selling off its estate of high street shops across the UK.

Last month, WH Smith announced that Hobbycraft owner Modella Capital will buy the division for around £76 million.

The new owner will rebrand the high street chain – which has 480 stores and 5,000 staff – as TGJones.

Chief executive Carl Cowling said the sale deal was linked to its “strategic ambition to become the leading global travel retailer”.

Windsor, Berkshire, UK. 29th March, 2025. A WHSmith store in Windsor. The BBC has reported that 'The name WH Smith, a staple of UK town centres since the Victorian era. Picture: Alamy

In recent years, the firm’s travel division – which also includes shops in hospitals – has grown to make up the bulk of its sales and profits, expanding to more than 1,200 stores across 32 countries.

Shareholders will be keen for more guidance on what the sale deal and the increased focus on travel means for its longer-term outlook.

Despite the significant deal, shares in the business dropped to their lowest level since 2020 earlier this month.The company is among retailers with exposure to the US market which have seen their value knocked by President Donald Trump’s US tariff plans.

Analysts at Investec highlight that around 28% of its sales and 30% of its profits for the current financial year are expected to come from the US, which also includes Marshall Retail Group (MRG) and InMotion stores.

Investec suggests the company may see more of an impact from a “macro-economic slowdown rather than a tariff impact”, as weaker growth may affect traveller numbers.