Is WH Smith rebrandable?

Terry Tanaka claims that a change of ownership is unlikely to improve the situation at WH Smith's high-street stores

Perhaps an updated stock range, some sleeker-looking stores, a new advertising campaign, or some new carpets would have made a difference. Instead, one of the oldest corporate strategies has been chosen by the new owner of WH Smith, one of the oldest high street retailers in Britain. The name is being altered. TG Jones will now be the new name for WH Smith. It's difficult to see that having a significant impact, which is the problem.

WH Smith is selling its 480 high street stores to retail investment firm Modella Capital for 76 million dollars. The company will only concentrate on its travel division, which operates in train stations and airports worldwide. Although it seems like a tacit admission that the only way to make money in Britain is for people to leave the country, the reasoning behind it is difficult to argue with.

WH Smith intends to concentrate on what is effective.

While high-street stores have been fighting to stay profitable, the travel industry has been growing quickly, selling books, snacks, and last-minute water bottles in the departure lounge. By eliminating the British high street's albatross, WH Smith will be able to concentrate on the more beneficial aspects of the company and get rid of the frequently run-down stores in market towns and provincial areas that sell a strange assortment of snacks, stationery, and books. Given that its share price had dropped by 20% in the previous 12 months, it had to take action.

It's difficult to understand how it makes sense for the remaining stores or the customers. Perhaps the only name as boring as "Smith" is the one that the marketing consultants are proud of having thought of. It is difficult to avoid the sense that the high-street industry will eventually disappear, joining the likes of Dixons and Woolworths as companies that have long since disappeared from the main shopping grounds.

Three major issues exist. WH Smith was fading anyhow, to start. The over-50s may harbor fond recollections of the time when it served as a provincial high street entryway to the outside world. Back when vinyl was still in use, it sold music in addition to a vast array of books and magazines. It was frequently the only source of information about events occurring elsewhere prior to the internet. Similarly, before classes resumed for the year, you could choose a new pencil case from its stationery section.

The market has, however, moved on despite sentiment. Magazines and newspapers have been rapidly declining. The Kindle has completely upended the book industry. Many still purchase books in hard copy, but Waterstones has grown and now offers a much better selection than Smiths. Stationery is still needed by people, but it can be purchased in many locations. Considering the significant changes in the market over the past two decades, it is surprising that Smiths is still in business.

Who is that TG?

Second, consumers will become confused by the brand change. Because its brand is still so well-known, Smiths has survived the decline in its core market. On the other hand, TG Jones won't have any brand. No one has ever heard of it, and they won't be particularly interested in learning what it does because it doesn't sell a particularly interesting variety of goods.

Lastly, it will divert management's attention from enhancing the stores. Given the numerous obstacles Smiths faced, it was always going to be difficult for it to prosper. Competitors like Waterstones, The Works, and Card Factory, however, have performed significantly better in comparable markets. The high-street stores were neglected by the previous management, who were much more focused on the travel division. The goal of the new group will be to build an entirely new brand. It seems unlikely that they will have the funds or time for anything else. The chain was largely sustained by the brand's legacy. The harsh reality is that it might not last much longer and that TG Jones will face even greater challenges than WH Smith did.