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TG Jones: High Street Hopes Fade
24 Dec
Summary
- Shoppers notice little change after WH Smith's high street business sale.
- Modella Capital acquired the business for up to £40 million.
- Plans include expanding TG Jones into 500 outlets with new services.
Six months following the acquisition of WH Smith's high street arm by Modella Capital, consumers report little has changed, with stores largely retaining their original layout and product selection. The new TG Jones branding has failed to impress many shoppers, who express a lack of connection compared to the former WH Smith brand. Modella Capital purchased the business for up to £40 million, with ambitious plans to transform TG Jones into a "hub of the high street" with 500 outlets.
The envisioned expansion includes integrating post office and banking services, alongside learning, play, and reading products. Some regions in the UK, like the north-east and East Midlands, are slated for increased store presence. Refurbishments are planned, though only 14 of the 456 stores have been revamped so far. Additional offerings will include branded sections from Modella's other businesses, such as Claire's and Hobbycraft, and partner Toys R Us.
Despite these strategic shifts, 24 stores have already closed since the deal was announced. Shoppers are increasingly opting for online retailers or cheaper high street alternatives like The Range and supermarkets. Experts anticipate further restructuring, potentially including significant store closures, especially after a 12-month prohibition on such actions expires next July, as the business navigates a challenging retail environment and high refurbishment costs.
