Amateur Photographer Magazine

 Jessops confident will survive 'tough' year [update] - Crunch time

Monday 26th January 2009

Chris Cheesman

Jessops is confident that it will defy the doom-mongers and survive high street oblivion but the business faces a 'very difficult' year ahead, according to chairman David Adams.

Earlier this month Jessops rushed out its buoyant Christmas sales figures on the back of mounting press speculation that Britain's biggest high street photographic retailer was on the brink of collapse.

In the wake of credit crunch headlines and consumer gloom what now for the future of a business which has shut down a quarter of its shops and laid off around 700 staff in the past 18 months?

On the day the UK officially entered a recession, and just days before the firm's full-year trading figures are due to be released, Jessops chairman David Adams spoke to Amateur Photographer magazine.

It's 'tough' out there

The Jessops' chief is confident that the firm will remain on the high street. But he could not give any guarantees about the future and was unable to comment on the soon-to-be-announced financial figures.

'It's certainly tough out there... this year is going to be very difficult,' he told us.

'There's no certainty in this world… who would have expected what's happened to some of the banks?

'But we are working very hard. I am confident but I can't give you any assurances - that would be wrong of me.'

Key focus areas

Despite the obvious struggle ahead, Adams believes there is a real place for a national photographic retailer, and his customers, suppliers and even his rivals tell him that. 'A lot of our competition believe there is a place for a national retailer providing the kind of service we do – if we get it right.'

He said he is in close communication with the firm's bank which, given Jessops' £50m debt, is a key stakeholder in the firm.

Adams - a former House of Fraser executive who was hired in June 2007 - believes Jessops must focus on three key areas: price, customer choice and service.

Asked whether he felt Jessops' decision to drop the legendary Pentax brand from its stores will cut consumer choice he said: 'We would love to work with them [Pentax]. We felt, quite simply, that this time round the products were not the most compelling offer in terms of functionality and price.'

But he stressed that the door is 'always open' to Pentax. 'If they come back with a fabulous product at the right price we'd be delighted.'

'Redefine' choice

The move was part of Adam's plan to 'redefine choice' where choice doesn't necessarily mean stocking everything. Adams accepts this will inevitably lead to 'some casualties' for which he said he makes 'no apologies' given the competitive nature of the marketplace.

Adams wants to develop 'deeper, better relationships' with 'fewer' suppliers. He also has the firm's financial position to consider. The business has more than halved its stock levels with Adams at the helm, from £55m to just over £20m.

Following the strategic review, Jessops former chief executive Chris Langley had suggested the chain would increasingly focus on selling digital SLR cameras. Eighteen month later, however, Adams' suggests that DSLRs are not the number one focus. Instead he believes Jessops should offer a broad range of products.

'I firmly believe that choice is not having absolutely everything available. In the past Jessops was perhaps guilty of the stores becoming too cluttered.'

He cites the decision to sell satellite navigation systems, for example, as a step too far. 'That excursion into non-core products was unsuccessful. We are a photography retailer...'

NEWS UPDATE 30 JAN 2009: Jessops reports £19.1m loss

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