The WH Smith name is to disappear from the high street after 233 years.
The 480 stores will be rebranded as TGJones following their £76 million sale to Hobbycraft owner Modella Capital.
WH Smith will continue to be the trading name for hundreds of travel outlets.
Meanwhile, demand for gold jewellery today led to strong retail sales figures in a boost to the sluggish UK economy.
FTSE 100 Live Friday
- WH Smith high street rebrand
- GDP revised higher for 2024
- Retail sales beat hopes
Market update: WH Smith shares fall, Aston Martin reverse continues
10:04 , Graeme EvansA new chapter for WH Smith failed to inspire a recovery for its share price today as the London stock market ended the week stuck in a risk averse mood.
The sale of 480 high street stores to the private equity owner of Hobbycraft leaves the FTSE 250-listed retailer to focus on its faster growing travel estate.
About three-quarters of revenue and 85% of trading profit came from travel in the financial year to August.
The £76 million disposal means the WH Smith name will disappear from the high street after 233 years, with Modella Capital set to rebrand the estate to TGJones. WH Smith will continue to be the trading name for hundreds of travel outlets.
WH Smith shares fell 28p to 1062p, leaving them 10% lower year-to-date and 29% cheaper than their level in late September.
The FTSE 250 index fell 0.3% or 51.37 points to 19,863.33 while the FTSE 100 index dropped 0.2% or 18.28 points to 8647.84 amid expectations that Wall Street will open another session in the red.
Utility and retail stocks supported the top flight, led by B&Q owner Kingfisher after shares rose 2% or 5.1p to 253.2p in the aftermath of results earlier this week.
Retail spirits were lifted by better-than-expected industry sales figures, with volumes up 1% in February after the previous month’s 1.4% improvement.
Renewable energy firm SSE rallied 24p to 1570.5p as investors welcomed the promotion of long-serving Martin Pibworth to the role of chief executive.
Having joined SSE in 1998, he is currently chief commercial officer as well as chair of CBI Scotland and a longstanding Energy UK board member. He replaces Alistair Phillips-Davies, who announced his decision to retire in November.
United Utilities also lifted 17.6p to 994.6p and Severn Trent rose 47p to 2485p.
Africa-based Endeavour Mining joined them near the top of the risers board, up 34p to 1821p after the safe haven asset of gold set a new high above $3,080 an ounce.
AstraZeneca also rose 88p to 11,284p after Goldman Sachs lifted its price target to 15,130p. Among the fallers, Rolls-Royce dropped 12p to 785p and British Airways owner IAG retreated 5.6p to 285.2p.
In the FTSE 250 index, Aston Martin Lagonda stayed under pressure after losing 7% of its value yesterday on the back of Donald Trump’s plan for 25% tariffs on US car imports. The shares fell another 3% or 2.4p to a fresh all-time low of 66.3p.
Retail group encouraged by show of high street support
09:29 , Graeme EvansThe British Independent Retailers Association expressed cautious optimism after WH Smith sold its high street estate to the private equity owner of Hobbycraft.
Chief executive Andrew Goodacre said: "The sale of WH Smith's high street business to Modella Capital represents a significant change for the UK retail landscape, but importantly, it appears these stores will continue to operate under new ownership rather than close entirely.
"We welcome Modella Capital's investment in these high street locations and hope this will secure the future of these stores, protect valuable jobs, and maintain essential services like Post Office counters that many communities rely upon.”
He added: "The high street continues to face significant challenges, but this acquisition shows there is still value and opportunity in town centre retail when approached with the right business model and investment.
Jewellery demand boosts retail sales
08:38 , Graeme EvansThe safe haven appeal of gold jewellery helped to boost retail sales last month.
Retail sales volumes rose by a better than expected 1% in February following a surge of 1.4% in January, according to the Office for National Statistics (ONS).
The ONS said watch and jewellery stores grew strongly over the month as retailers reported “increased demand for gold because of wider economic uncertainty. “
SSE shares rise on CEO appointment, WH Smith falls
08:34 , Graeme EvansGains in the utility sector have underpinned a robust session for the FTSE 100 index, with SSE up 27.5p to 1574p after naming insider Martin Pibworth as new chief executive.
Having joined SSE in 1998, he is currently chief commercial officer as well as chair of CBI Scotland and a longstanding Energy UK board member. He replaces Alistair Phillips-Davies, who announced his decision to retire in November.
United Utilities also lifted 8.8p to 985.8p and National Grid rose 10.2p to 991.6p.
AstraZeneca improved 110p to 11,306p after Goldman Sachs lifted its price target to 15,130p. The FTSE 100 is down 5.60 points at 8660.52.
WH Smith shares have fallen 2%, down 24.5p to 1065.5p after the retailer announced the sale of its high street estate in a deal worth £76 million.
GDP revisions boost UK's 2024 performance, trade deficit narrows
07:45 , Graeme EvansThe UK economy grew by 1.1% in 2024 rather than 0.9% as first thought, figures from the Office for National Statistics showed today.
The improvement follows slight upward revisions to estimates earlier in the year. Fourth quarter growth of 0.1% is unrevised from the previous estimate.
The ONS said the UK’s trade deficit narrowed from £2.3 billion in December to £1.5 billion in January following a 3.6% month-on-month rise in exports.
Some of this narrowing may have been due to the front loading of goods exports to the US ahead of possible tariffs.
Other figures released by the ONS today showed 1.9% quarter-on-quarter growth in consumers’ real incomes in the final three months of 2024.
Capital Economics said today’s deluge of data confirmed that the economy was weak even before the full effects of higher business taxes are felt.
It added: “Overall, while there are some tentative green shoots for February, the big picture of an economy that is struggling under the weight of higher business taxes, heightened global uncertainty and weak consumer sentiment remains.”
WH Smith high street stores set for TGJones rebrand
07:16 , Graeme EvansWH Smith has sold its high street stores to Hobbycraft owner Modella Capital in a deal valuing the business at £76 million.
The chain will operate for a short transitional period under the WH Smith brand before rebranding to TGJones.
The high street business employs about 5,000 staff across 480 stores. The disposal will allow the WH Smith group to focus on higher growth travel retail markets.
Chief executive Carl Cowling said: “High Street is a good business; it is profitable and cash generative with an experienced and high-performing management team.
“However, given our rapid international growth, now is the right time for a new owner to take the High Street business forward and for the WHSmith leadership team to focus exclusively on our Travel business. ”
Retail sales figures beat hopes
07:06 , Graeme EvansRetail sales volumes rose by 1% in February, much better than City expectations for a decline of about 0.5%.
The growth follows a rise of 1.4% in January, which was revised down from a rise of 1.7% in the previous estimate.
The ONS said non-food store sales volumes grew strongly, while supermarkets fell back following a strong rise in January.
Gold hits new record, index lower after US decline
07:01 , Graeme EvansGold is at a new record price above $3080 an ounce as trade tensions continue to drive demand for the safe haven asset.
The landmark follows another choppy session on Wall Street as the Dow Jones Industrial Average closed down 0.4% and the S&P 500 fell 0.3%.
Among the car makers, the impact of Donald Trump’s 25% tariffs on US imports left the shares of Ford 4% lower and General Motors down 7%.
The FTSE 100 index is forecast to open slightly lower, having finished yesterday’s session down 0.3% at 8666.12.
The pound stood at $1.2939 prior to today’s release of retail sales figures and fourth quarter GDP revisions.
