Jessops gone into administration...
Discussion
http://www.bbc.co.uk/news/business-20958659
"Troubled High Street camera retailer Jessops has gone into administration, with PricewaterhouseCoopers appointed as the administrator. In 2009, Jessops managed to avoid administration by agreeing a debt for equity swap with its lender HSBC. In recent years, it has been hit by increasing competition from supermarkets and internet retailers.Last year, chief executive Trevor Moore left Jessops, founded in Leicester in 1935, to become HMV boss."
"Troubled High Street camera retailer Jessops has gone into administration, with PricewaterhouseCoopers appointed as the administrator. In 2009, Jessops managed to avoid administration by agreeing a debt for equity swap with its lender HSBC. In recent years, it has been hit by increasing competition from supermarkets and internet retailers.Last year, chief executive Trevor Moore left Jessops, founded in Leicester in 1935, to become HMV boss."
Ozzie Osmond said:
Question: How much longer can HMV stay afloat?
Can't be long... with things like this happening... http://www.bbc.co.uk/news/business-20944909crankedup said:
Another internet sales victim. Why would people buy a camera from Jessops at 200 quid if they can buy the same thing fifty quid cheaper on-line. Its simply modern shopping that is continuing to kill traditional retail outlets.
I agree, but would add that smartphones have contributed more in Jessops' case, as they have almost singlehandedly replaced consumer spend on point and shoot cameras, and Jessops don't sell 'em.10 Pence Short said:
crankedup said:
Another internet sales victim. Why would people buy a camera from Jessops at 200 quid if they can buy the same thing fifty quid cheaper on-line. Its simply modern shopping that is continuing to kill traditional retail outlets.
I agree, but would add that smartphones have contributed more in Jessops' case, as they have almost singlehandedly replaced consumer spend on point and shoot cameras, and Jessops don't sell 'em.MadMullah said:
One of the problems with jessops was that they wanted to stay on the old beliefs the company had - with relying on developing film and selling equipment
but regardless of it all - the digital camera did kill it off.
A good point - digital killed off annuity revenue - film and developing - which also got the customer into the shop. Fewer shots taken, higher spend per year on films, developing, albums and reprints?but regardless of it all - the digital camera did kill it off.
This is a shame.
Jessops made some real effort improving some of their stores. Some of the bigger stores were pretty good.
I like the way they actually have cameras on show you can pick up and handle. However, I suspect people were merely popping in to try cameras for size, only to then go to Amazon to buy them...
This is a shame because pricing was pretty good too. In some cases their prices are very competitive with the inter web.
Canon 7D , for example, pretty much the same price at Jessops as it is on tinter web...
Clearly running a branch network incurs crippling costs however.
Jessops made some real effort improving some of their stores. Some of the bigger stores were pretty good.
I like the way they actually have cameras on show you can pick up and handle. However, I suspect people were merely popping in to try cameras for size, only to then go to Amazon to buy them...
This is a shame because pricing was pretty good too. In some cases their prices are very competitive with the inter web.
Canon 7D , for example, pretty much the same price at Jessops as it is on tinter web...
Clearly running a branch network incurs crippling costs however.
Inevitable really.
Phones at the bottom end.
Commoditisation of the product in the middle – your Canon SSDFE-332XC is essentially identical to my Fuji 334D-FG/8X – so all mid-range sales are on price and go to online or duty free.
Top end of the market not big enough to support a chain.
I’m now thinking what will be the next sector to go, but there’s not that much left. Maybe Jewellers ?
And at some point Amazon is going to open a display-only showroom for the few remaining items where you really do want to hold them before ordering, and you’ll order online in the showroom for home delivery as normal. That’ll be free for Amazon to operate because they’ll be able to charge manufacturers for shelf space. (“Hi. Panasonic ? Amazon here. Would you like to be our preferred TV vendor in our see-it-and-touch-it showrooms ? Great. That’ll be 2 gazillion pounds please. Oh, and a load of free TVs. Thanks.”)
Phones at the bottom end.
Commoditisation of the product in the middle – your Canon SSDFE-332XC is essentially identical to my Fuji 334D-FG/8X – so all mid-range sales are on price and go to online or duty free.
Top end of the market not big enough to support a chain.
I’m now thinking what will be the next sector to go, but there’s not that much left. Maybe Jewellers ?
And at some point Amazon is going to open a display-only showroom for the few remaining items where you really do want to hold them before ordering, and you’ll order online in the showroom for home delivery as normal. That’ll be free for Amazon to operate because they’ll be able to charge manufacturers for shelf space. (“Hi. Panasonic ? Amazon here. Would you like to be our preferred TV vendor in our see-it-and-touch-it showrooms ? Great. That’ll be 2 gazillion pounds please. Oh, and a load of free TVs. Thanks.”)
What's interesting to me is that multi-outlet retailers are getting eaten alive while the likes of John Lewis, with a well-known name but relatively few actual stores, are able to make a killing both in store and online.
Also interesting is argos whose business model looked as dead as a dodo. Then they got themselves organised online, including click-snd-collect, and all has worked out fine.
It's a very patchy economy out there right now.
Also interesting is argos whose business model looked as dead as a dodo. Then they got themselves organised online, including click-snd-collect, and all has worked out fine.
It's a very patchy economy out there right now.
I worked for Jessops for 2 years and its no surprise to me. It is a shame though as a lot of great hardworking people will undoubtedly looking for new jobs.
Jessops have been going through a big revamp of the company and had spent alot of money refitting the shops. The one I worked in (Redditch) reopened just before Christmas.
The problem is cameras and hard wear have little profit in them hence why prices are similar everywhere. Plus to that all the running costs it makes buying from the shop too expensive.
The money was made in photos, photo gifts, developing, warranties and accessories.
When I left we had rediculously high targets for warranties, I felt I was being told to pressure people into them and told the area manager how I felt about this. Because of this I would often sell the least warranties but always had happy returning customers coming to see me. Being a photographer myself, I always took my time with them and honestly appropriated customers coming back into store to excitedly show me their photos and usually buy more.
But the bosses want profit before happy customers.
Shame
Excuse the spelling and grammar as I'm on my phone and don't care
Jessops have been going through a big revamp of the company and had spent alot of money refitting the shops. The one I worked in (Redditch) reopened just before Christmas.
The problem is cameras and hard wear have little profit in them hence why prices are similar everywhere. Plus to that all the running costs it makes buying from the shop too expensive.
The money was made in photos, photo gifts, developing, warranties and accessories.
When I left we had rediculously high targets for warranties, I felt I was being told to pressure people into them and told the area manager how I felt about this. Because of this I would often sell the least warranties but always had happy returning customers coming to see me. Being a photographer myself, I always took my time with them and honestly appropriated customers coming back into store to excitedly show me their photos and usually buy more.
But the bosses want profit before happy customers.
Shame
Excuse the spelling and grammar as I'm on my phone and don't care
Edited by XG332 on Wednesday 9th January 17:01
Ozzie Osmond said:
What's interesting to me is that multi-outlet retailers are getting eaten alive while the likes of John Lewis, with a well-known name but relatively few actual stores, are able to make a killing both in store and online.
Yes, very good point. Maybe JL will go down the route of my Amazon display room idea as their customer base becomes more familiar with online (because the older ones are shuffling off).Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff