British books and stationery retailer WH Smith is set to disappear from UK high streets following a £76 million (€91.2 million) deal to sell its 480 retail outlets to private equity firm Modella Capital, the owner of Hobbycraft.

The move is the latest in a series of high-profile closures affecting the UK retail landscape, which has struggled to recover from the pandemic. WH Smith, a brand with over two centuries of history, will continue to operate under its name in airports, railway stations, and hospitals, but its high street stores will be rebranded as TGJones.

Retail Shake-Up as Modella Capital Expands Portfolio

Modella Capital, which has previously acquired The Original Factory Shop and Hobbycraft, will take control of WH Smith’s high street operations, including several stores in shopping centres and retail parks. However, the exact timeline for the transition remains undisclosed.

WH Smith’s Post Office counters will continue running as usual, and the company has reassured customers that business operations will remain normal during the transition. The retailer, which employs around 5,000 people across more than 1,100 stores in the UK, has also hinted at exploring further strategic changes, including the potential sale of its digital greetings card brand, Funky Pigeon.

Despite the deal, concerns remain over potential job losses, though Modella has not confirmed whether redundancies will follow. The firm has stated that new product ranges will be introduced, but further operational details have not yet been revealed.

WH Smith Shifts Focus to Travel Business

The decision to exit high streets comes as WH Smith pivots towards its more profitable travel division. Group CEO Carl Cowling highlighted that the high street business, while still profitable, had become a smaller part of WH Smith’s overall operations amid the company’s international expansion.

“Our UK High Street business has been a good, cash-generating operation, but with our rapid international growth, now is the right time for a new owner to take it forward,” Cowling said. “This will allow WH Smith’s leadership team to focus exclusively on our travel business, which has stronger growth prospects.”

Russ Mould, investment director at AJ Bell, noted that the deal enables WH Smith to concentrate on expanding its travel retail footprint. However, he cautioned that losing the WH Smith name from high streets could negatively impact footfall.

“The WH Smith brand was a key reason why its stores survived in an increasingly challenging retail environment,” Mould said. “Shoppers relied on the retailer for specific items, and removing the brand could see customer traffic decline under the new TGJones name.”

High Streets Continue to Struggle

The departure of WH Smith from UK high streets is expected to further weaken an already struggling retail sector. The pandemic and changing consumer habits have led to a wave of closures, including Debenhams, Daniel of Ealing, and Cool Britannia. Retailers like New Look, Quiz Clothing, and Select Fashion have also been forced to shut multiple locations.

High street banks have followed a similar trend, with major lenders like Halifax, Lloyds, Bank of Scotland, and Barclays closing branches in response to shifting consumer behaviour.

Despite these challenges, the retail sector showed resilience in February, with the Office for National Statistics (ONS) reporting a 1% monthly increase in sales volumes. This exceeded market expectations of a 0.3% decline and followed a 1.4% rise in January.

Household goods led the growth, experiencing their strongest monthly performance since April 2021, while clothing and footwear sales also contributed positively. However, food store sales saw a decline.

On an annual basis, retail sales in February rose 2.2%, surpassing analyst projections of a 0.5% gain.

Consumer Spending Outlook Remains Mixed

Looking ahead, consumer spending trends appear uncertain. A McKinsey & Company report found that while 22% of shoppers plan to increase spending on garden furniture and 17% on hotels, many are cutting back in other areas.

“Nearly 40% of consumers plan to reduce clothing purchases, and almost half (49%) intend to spend less on jewellery,” said Sagar Shah, associate partner at McKinsey & Company.

He also noted that while inflation is easing, it has yet to drive stronger sales volume growth. Rising wages are putting pressure on retailers’ margins, forcing them to adjust pricing strategies and promotional tactics to maintain profitability.

As WH Smith transitions out of the high street retail landscape, the sector faces ongoing uncertainties, with businesses having to adapt to changing consumer preferences and economic conditions.

More than 2,000 jobs are at risk as British Steel, the UK’s second-largest steelmaker, announced plans to shut down its blast furnaces and steelmaking operations in Scunthorpe. The decision follows failed negotiations between the company’s Chinese owner, Jingye, and the UK government over a financial support package.

Unions Call for Government Intervention

Unions have urged the government to step in and secure the future of British Steel, which has been incurring daily losses of around £700,000 (€840,000). Since acquiring the company in 2020, Jingye has invested over £1.2 billion to sustain operations but cited “highly challenging market conditions, tariffs, and rising environmental costs” as key reasons for the decision to shut down primary steel production.

British Steel is currently consulting with unions on the closures and potential reductions in rolling mill capacity, which could take effect as early as June. Between 2,000 and 2,700 jobs are at stake.

Failed Rescue Talks and Calls for a Green Transition

The company had sought government support for a significant investment in two new electric arc furnaces, which would reduce carbon emissions compared to traditional blast furnaces. However, after months of negotiations, no agreement was reached.

Unions had proposed a transition plan to decarbonize steelmaking, advocating for continued operation of the existing blast furnaces while the new electric furnaces were being built. This strategy would require an additional £200 million in government support to offset carbon costs during the transition period.

“This is a dark day for our steel industry and our country,” said Roy Rickhuss, General Secretary of the Community union. “The closures at Scunthorpe would be a hammer blow to communities built on steel, where thousands of jobs—both directly and in the supply chain—depend on this industry.”

Rickhuss urged both the government and Jingye to resume negotiations, emphasizing that the company has not ruled out keeping the blast furnaces operational during a transition if government support is secured.

Government Response

Business and Trade Secretary Jonathan Reynolds stated that the government remains committed to finding a solution. “We’ve been clear there’s a bright future for steelmaking in the UK, and we will continue working tirelessly to reach an agreement,” he said.

Decline of the UK Steel Industry

Once a global leader, British steel production employed over 300,000 people in the postwar era. However, competition from cheaper steel imports, particularly from China, has significantly reduced its footprint. Today, the industry employs around 40,000 people, contributing just 0.1% to the UK economy.

With uncertainty looming over the future of British Steel, industry leaders and unions continue to push for a government-backed strategy to secure jobs and ensure the long-term sustainability of steel production in the UK.

Global markets were rattled after US President Donald Trump announced a 25% tariff on all imported automobiles, set to take effect next week, with auto parts tariffs following on May 3, 2025. The move has drawn widespread condemnation from European industry leaders, who warn of supply chain disruptions, increased costs, and potential job losses.

White House Justifies Tariffs on National Security Grounds

The White House defended the tariffs, citing national security concerns. In an official statement, the administration claimed that foreign automobile imports threaten the US industrial base and necessitate protective measures.

“I find that imports of automobiles and certain automobile parts continue to threaten to impair the national security of the United States and deem it necessary and appropriate to impose tariffs,” the statement read.

Europe Reacts Strongly

European leaders and industry groups swiftly condemned the tariffs. German Economy Minister Robert Habeck called for a decisive European response, stating, “The EU must now give a firm response to the tariffs—it must be clear that we will not back down in the face of the USA.”

The German Association of the Automotive Industry (VDA) also criticized the decision, warning that it could disrupt supply chains and harm economic growth. Hildegard Müller, VDA President, called the tariffs “a disastrous signal for free, rules-based trade” and urged urgent US-EU negotiations to prevent further escalation.

Impact on German-U.S. Trade Relations

Germany’s automotive industry maintains strong ties with the US, employing around 138,000 American workers, including 48,000 in manufacturing and 90,000 in parts supply. Nearly half of the more than 900,000 vehicles produced by German automakers in the US are exported globally.

A VDA survey found that 86% of medium-sized automotive firms expect to be affected by the tariffs—32% directly and 54% indirectly through supply chains. The European Automobile Manufacturers’ Association (ACEA) added that the tariffs come at a critical time for an industry transitioning toward electrification and sustainability.

“European automakers have been investing in the US for decades, creating jobs and fostering economic growth,” said Sigrid de Vries, Director General of ACEA. She urged immediate dialogue between the US and EU to avoid a full-scale trade war.

Analysts Warn of Price Hikes and Earnings Pressure

Financial analysts cautioned that the tariffs could significantly raise vehicle prices for US consumers. Goldman Sachs analyst Mark Delaney estimated that imported car prices could increase by $5,000 to $15,000 (€4,600–€13,800), while US-assembled models may see cost hikes of $3,000 to $8,000 (€2,800–€7,400) due to reliance on imported parts.

Delaney noted that Tesla and Rivian, which manufacture entirely in the US, would be less affected. Ford and General Motors, which produce 80% and 60–70% of their US sales volume domestically, respectively, could still face challenges due to global supply chain complexities. European automakers like Volvo Cars and Porsche are expected to be the hardest hit.

Stock Markets React

The announcement triggered a sharp sell-off in auto stocks. Porsche AG saw its shares drop 5.4%, while Mercedes-Benz AG fell 4.8%, Ferrari declined 4.7%, BMW AG slipped 3.7%, and Volkswagen AG lost 2.9%.

US automakers were also impacted, with General Motors falling 7%, Ford declining 3.7%, and Tesla slipping 1.7% in premarket trading. Analysts predict continued volatility as the industry assesses the full impact of the tariffs.

With tensions escalating, industry leaders on both sides of the Atlantic are urging swift negotiations to prevent further economic fallout.