Majority of customers against TGJones rebrand

A survey of over 1,800 consumers by product intelligence firm Vypr last week, shared exclusively with Retail Week, suggests that the public was overwhelmingly against the name change.

Seven out of 10 respondents said they do not think that the brand change from WHSmith to TGJones had worked well, highlighting the uphill battle new owner Modella Capital has faced in winning customers around to the new name. 

Seven out of 10 survey respondents also said that retail rebrands more generally do not work well, while six out of 10 said they preferred the old WHSmith high street branding and fascia to TGJones.

Reasons given for not liking the name change by respondents included that it was not different enough from the old name (17.59%), sounds weak (15.42%) or basic (13.15%), that it was less trustworthy (nearly 10%), and that it sounds cheaper (13.85%).

Reports last week suggested that Modella Capital, the owner of the high-street brand formerly known as WHSmith, was approaching restructuring firm Teneo to look at plans for restructuring the business. The news suggested that the retailer may look at closing 80 of the brand’s 480 stores.

The Telegraph first reported that the company was struggling to trade under the new brand name, with sales at stores stronger at ones still branded as WHSmith.

It was also reported that Modella Capital might go back to former owner WHSmith to ask for money to help keep the struggling business afloat, which Retail Week understands would be highly unlikely to succeed, particularly given the travel retailer’s current accountancy travails. 

A spokesman for Modella Capital said: “We have made significant progress since acquiring TGJones from WHSmith plc, especially given the highly challenging retail environment. We have launched and expanded several new partnerships, refitted several stores, opened new Post Offices, and invested significantly for the first time in nationwide marketing campaigns - all while continuing the complex separation from the former parent company.

“We have improved availability, sharpened pricing, added new ranges, including Hobbycraft; and maintained much loved ranges, including all of the famous WHSmith-branded products. Amid what is undeniably a harsh climate on the UK High Street, the management of TGJones is working hard to turn round this important retail business.”

Vypr founder Ben Davies said: “The TGJones name and branding was chosen to deliberately play into the heritage of WHSmith by creating a similar look and feel. That was a good decision in terms of consumers retaining high brand recognition and awareness of the products sold. However, its similarity has also caused confusion, as the highest proportion of consumers think they still shop with WHSmith on the high street. With such a high number of shoppers knowing that the rebrand had taken place, it is at odds with them being aware of where they shop.

“Consumers have a distrust of retail rebrands and, as a nostalgic nation, shoppers don’t like it when their favourite brands disappear or change. Despite the last Woolworths stores closing over 16 years ago, this is still the name that is at the forefront of retailers that UK consumers miss the most.

“With consumers divided about whether they are worried about the potential store closure, it is possible that they are worried about job loss and the impact on the high street rather than loyalty to the stores themselves. The majority claim to only shop in chain newspaper, magazine, and stationery shops once a quarter, so there is low regularity, which also won’t help to build brand recognition.”