WHSmith's high street division has witnessed a stark 30 per cent fall in trading profit as it readies for its disposal to private equity firm Modella Capitlal.
For the half-year running up to 28 February 2025, the retailer’s high street branch reported profits of £15m, a drop from the previous year’s £22m for the same timeframe, as reported by .
Moreover, sales dipped by seven per cent, summing to £239m.
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Ahead of the impending sale of its 482 stores to Modella for £76m, confirmed in late March, WHSmith's high street arm is seeing performance wane.
The transaction signals a pivot towards focusing on the burgeoning travel retail segment for WHSmith.
Nevertheless, WHSmith's travel business sustained its upward trajectory, with trading profits climbing by 12 per cent, underpinned by a six per cent increase in sales reaching £712m.
Uncertain future for TG Jones
With eyes on significant expansion, the retailer has revealed plans for opening an additional 90 shops, and anticipates inaugurating 60 new locations in this financial year alone.
Amidst this strategic reorientation, WHSmith Chief Executive Carl Cowling has voiced his optimism about the enterprise's prospects, highlighting the strong showing in the travel sector and projecting favourable developments for the remainder of the financial year.
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"We are well positioned for the peak summer trading period and continue to benefit from growth opportunities in global travel retail", Cowling remarked.
The iconic British high street retailer, WHSmith, is set to rebrand its 480 stores as TG Jones, following an unsuccessful attempt to rebrand as 'WHS' in 2023. Despite potential geopolitical and economic uncertainties, the company remains on track to meet full-year market expectations.
As part of its transformation into a global travel retailer, WHSmith is focusing on expanding its travel businesses, particularly in North America, which it identifies as a key growth market. The company's expansion strategy includes introducing new store formats and investing heavily in its retail offerings across airports, hospitals, and rail stations, areas where it has already experienced robust revenue growth.