WH Smith Headquarters Demolished After Major Store Sale
A major UK retail chain is proceeding with the demolition of its headquarters after selling off 500 of its stores in a strategic shift. WH Smith, the well-known stationery and books retailer, has commenced tearing down its corporate base in Swindon, as confirmed by local bosses to the Swindon Advertiser.
Store Sale and Rebranding to TG Jones
The demolition follows WH Smith's sale of 500 stores to Modella Capital for £76 million. These stores have since been rebranded as TG Jones, a change that many customers have noticed on high streets over the past year. Previously, these locations were regular destinations for shoppers purchasing magazines, stationery, and books.
Focus on Travel Sector Drives Decision
WH Smith's decision to demolish its headquarters aligns with its strategic pivot toward the travel sector. CEO Carl Cowling described the store sale as a "pivotal moment" for the business, emphasizing that the travel industry now accounts for approximately 75% of group revenue and 85% of trading profit. The company currently operates over 580 travel branches globally and plans to open more while closing 20 high street stores over the next three years.
Development Plans for the Site
The demolition will clear the way for the construction of 217 new flats and houses, as part of approved development plans. Local authorities have stated that all structures associated with the site are to be demolished, marking a significant transformation for the area.
Recent Challenges and Investigations
This move comes amid recent challenges for WH Smith, including an investigation by the Financial Conduct Authority (FCA) announced in December. The probe follows the discovery of accounting failures in the chain's North American branch, which led to a nearly £600 million loss in market value in a single day when the error was revealed in August.
As WH Smith staff witness the headquarters' demolition, the company continues to navigate its transition from a traditional high street retailer to a focused travel business, aiming to capitalize on its more profitable ventures in airports and train stations worldwide.
