Latest financial news from Jessops

I like the phrase "expansion binge". So they bought up dozens of smaller, local retailers, and now that Jessops are in the financial poo, we could end up losing camera shops everywhere. Even if they do get their debt facility "restructured", they seem a million miles away from returning to profitability, with losses of £49.8m this year. If the solution to this problem is a bit of store refurbishment (as we saw with the relaunch of the Strand store in central London the other week), Jessop's won't last too much longer. The directors seem to be living in cloud cuckoo-land.
 
I don't have an awful lot of sympathy for a company that was so catastrophically badly run that they thought having two stores in one small town centre made any kind of financial sense.
 
I wonder how much of their challenge is down to the ever increasing spiral of expense for the equipment itself.

New gadgets seem the order of the day rather than high quality basics, and some of the lens prices are literally stunning.

Their prices aren't totally uncompetitive, with one or two exceptions either.
 
it's operational gearing, simple as that - high fixed costs (rent mainly) mean that a small change in sales leads to a massive changes in profits, to a large loss in this case. Many businesses are faced with this problem at the moment (Woolworths was another example).

Smaller entities are winding up the companies that have the rent/lease agreements, reforming and buying the trading name from the administrators (a paper exercise) in order to break the leases and renegotiate prices.
 
I love all this about lack of sympathy and badly run. The current management were brought in after Jessops got in a mess and are trying to rescue it.

You may be right that they won't last much longer but some of the stores are likely to be bought out of administration at that time.

I think it must be really tough at the moment for them. They've got a new management team trying to make good the over expansion of the previous years and staff who must be worried sick about their futures.
 
I'm afraid to say part of Jessops problem is their sometimes poorly trained staff. My local shop is Swansea, over the years I have seen some excelent staff there and sadly some who wouldn't know a roll of film if it had a flashing "I'm a roll of film" sign on it.
Once a customers realises he/she has been sold the wrong item, given the wrong information, or that the staff haven't a clue they will tend to avoid that shop.
I know 3 pro togs in my area who shop at a slightly dearer rival shop simply because the service is better, they get all the help they need and the after sales service is faultless. One of those has spent at least 10k on kit this year alone, thats money jessop didn't get simply because of bad service before.
 
I'm surprised a pro tog spending 10k needs help on making a purchase. It's a tough spiral they are in. Losing money, have to cut back on staff, etc.
 
At this rate the staff are all going to leave, too.

Cut one of my colleague's contracts from 30 hours to 12.
He needed that money to live and now he's screwed, and struggling to find another job, as is everyone.

Cutting the contracts means less holiday, and they're giving people 6 hour shifts so we're not entitled to a lunch break, which means that the manager/team leader is 'lone trading' for an hour and a half throughout the day.

Various other things that annoy the staff, too.

I'm leaving in september. Our manager is leaving to go to a London store. One of my colleagues has college twice a week and needs the hours to be flexible. Never been an issue. When the new manager comes in that's all going to change and so it's either college or Jessops. Uhhhhh.
Also she asked for holiday over christmas, un paid. It's in our contract of employment that we're not allowed any time off in December or January, but it's down to the manager and area manager's discretion. They both unofficially authorised it. That area manager was sacked and the new one came in and said "absolutely not".
If she wants to keep her job she'll stay here while everyone else - her friends and family - go to scotland for christmas. Again, christmas with her friends and family - no job. Christmas alone - Jessops.
 
grumpybadger said:
I love all this about lack of sympathy and badly run. The current management were brought in after Jessops got in a mess and are trying to rescue it.

You may be right that they won't last much longer but some of the stores are likely to be bought out of administration at that time.

I think it must be really tough at the moment for them. They've got a new management team trying to make good the over expansion of the previous years and staff who must be worried sick about their futures.
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I would love to see Jessops return to being a thriving, competitive high-street camera shop. Unfortunately, if it weren't for "behind-the-scenes-news", I wouldn't know that there actually was a new management team at Jessops. Certainly in my local, they still charge the same higher prices for most of their equipment that they were doing a few years ago.

The only new thing I have seen since the new management came in is the refurbishment of the Strand store in London - a prime site, only 300 yards from Trafalgar Square. Have a look in there if you get a chance, and see if you come out saying "WTF???" like I did a couple of weeks ago. I don't know what else they are doing to compensate for getting too big too quickly.

I feel sorry for the staff, because the company has been badly run for years at a senior level. This has now given the company a reputation that is hard to shift.

Unfortunately, like many other togs here, I can't really remember the last time I made a serious purchase at Jessops. That is the situation the management need to address.
 
A shop is frequently going to have higher prices than online, their cost base is higher. I wonder how many people have used Jessops to have a look at stuff and then bought online.

I have always found them to be pretty competitive on camera bodies and this household has bought a 5D, 2x40D and a 50D from the Cambridge shop in the last few years. If you think Jessops prices are high, you should try the independent! In each case they were £100 to £150 more...
 
foodpoison said:
Cut one of my colleague's contracts from 30 hours to 12.
He needed that money to live and now he's screwed, and struggling to find another job, as is everyone.
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That's about the worst thing they could do to somebody. They should do him a favour and terminate his contract. He'd be better off on jobseekers.

If I was him I'd seriously consider legal advice, but if he's already accepted his change of terms then he's probably waived his rights anyway :(
 
grumpybadger said:
I'm surprised a pro tog spending 10k needs help on making a purchase. It's a tough spiral they are in. Losing money, have to cut back on staff, etc.
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He actually wanted advice on bridge cameras for a new project he was starting, with no knowledge of the different bridge cameras he went to jessops for advice on which would be best suited for what he needed, when he realised he knew more about them than the staff (and he knew b****r all) he went elsewhere and found somebody who did actually know about the products they sold.
 
I suppose it depends where you are. Unfortunately for Jessops in London, there are many independent competitors only a short distance away. Personally, I use Camera World just off Oxford St for my purchases; they're a bricks and mortar store, but also very competitive online, with outstanding service in my experience.
 
cyclone said:
That's about the worst thing they could do to somebody. They should do him a favour and terminate his contract. He'd be better off on jobseekers.

If I was him I'd seriously consider legal advice, but if he's already accepted his change of terms then he's probably waived his rights anyway :(
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By working there you automatically accept the contract of employment, regardless of whether you've signed any agreements.

grumpybadger said:
A shop is frequently going to have higher prices than online, their cost base is higher. I wonder how many people have used Jessops to have a look at stuff and then bought online.

I have always found them to be pretty competitive on camera bodies and this household has bought a 5D, 2x40D and a 50D from the Cambridge shop in the last few years. If you think Jessops prices are high, you should try the independent! In each case they were £100 to £150 more...
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The 5D mk 2 is the cheapest around at Jessops. My 40d was cheaper than anywhere else, too.
My 24-60 was £44.
My Manfrotto 190xb was £76.
 
foodpoison said:
By working there you automatically accept the contract of employment, regardless of whether you've signed any agreements.
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Thats not generally true - contract and emploment law is a bit of a minefield, with all sorts of implied terms, written or not and if he has no chance to negotiate that sort of change then he propably won't be automatically accepting anything

Hugh
 
boyfalldown said:
Thats not generally true - contract and emploment law is a bit of a minefield, with all sorts of implied terms, written or not and if he has no chance to negotiate that sort of change then he propably won't be automatically accepting anything

Hugh
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Ooh really? That's what I was told at my local CAB re. my contract of employment.

Thankfully I will, for as long as I can help it, never work in retail, ever again.
 
Photo Plod said:
Even just using the examples in this thread - the Canon 5D Mk II Body only is listed on Jessops website at £2049, while Camera World who I mentioned above, have got it for £1929.
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its £1940 at Jessops at the moment according to CPB which makes it £2.03 more expensive then camera world, again according to CPB?

Generally I've always found Jessops to be atleast competitive on big ticket items - bodies and lenses, but with one or two exceptions I wouldn't ask their staff for help or advice.

Acessories are a different matter and they're normally way over priced

Hugh
 
The last time I went into Jessops was to get a new diffuser for my flash, the two guys in the shop didn't know what I was talking about, never again.
 
foodpoison said:
By working there you automatically accept the contract of employment, regardless of whether you've signed any agreements.
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Which would probably make his case stronger.

boyfalldown said:
Thats not generally true - contract and emploment law is a bit of a minefield, with all sorts of implied terms, written or not and if he has no chance to negotiate that sort of change then he propably won't be automatically accepting anything

Hugh
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Correct :thumbs:
It's implied terms specifically I'm thinking about.
Don't quote me, but it's something along the lines of if you've worked a set rota for 8 weeks that forms an implied contract which cannot be broken without your consent.
If he's been working flexible hours anyway it might be a bit more tricky, but I still think he could legally expect 30 hours work if he's been getting it for a while.

However, like I said, if he's already accepted the change then he may have waived his rights, and it would probably be better for him if they terminated his employment.
He can't do that himself, he'd lose his right to benefits, hence why I said that's about the worst thing they could do to anybody.
 
Jessops may not have the best price on the labels but they price match any uk retailer. I've always found the best price, nipped into town and they've matched it with no fuss. Be a shame if it went :(
 
ok my reply here may take this a little OT but im keen to understand and clarify this... il start at the beginning, losing Jessops from the high street would be a bad thing much as losing Woolies was to grandparents.. I too frequent Jessops and purchased a D700 from them prior to Christmas primarily because they were the only company who offered 12 months interest free finance ( WHexpress do 6) However it is duly noted that the general staff product knowledge is poor as is perhaps the customer service/sales delivery, some of you have stated using higher priced stores down to customer service I too did this recently and have always done this, however I cant help but want to help save jessops and want it to be what we all think it should be.
Comet electrical have a big training team and constantly train staff turnover last year in the region of 49 million.
Currys/Dixons dont have a training structure like this and made a huge loss last year... go figure!
Can jessops be saved? and if so what are the values it needs?
 
i bought my 50d from jessops online, i used codes and got a free (crappy) bag and a memory card, all for less than anywhere else, by around £40. Ive always bought from jessops, because where I live its the only place to go
 
oskanoears said:
Can jessops be saved? and if so what are the values it needs?
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Competitive prices, good service and an ability to cater for the general public as well as serious photographers.

They are already conveniently located all over the country. They already have good links with the Snapfish printing company owned by HP. If they were to stick to the values I've listed above, and restore their second-hand trade and training courses (which have been severely wound down), Jessops would end up being a retailer I would use regularly.
 
Jessops have only themselves to blame because over tha last fews years they have beeen charging top price for every think. Last year i was after a new Canon lens looked all over for best price bought it from Mifsuds in the end. With a lens hood clear filter & P&P it was still £20 cheaper than the price of the lens in Jessops.
 
Photo Plod said:
Competitive prices, good service and an ability to cater for the general public as well as serious photographers.

They are already conveniently located all over the country. They already have good links with the Snapfish printing company owned by HP. If they were to stick to the values I've listed above, and restore their second-hand trade and training courses (which have been severely wound down), Jessops would end up being a retailer I would use regularly.
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I hear what your saying hear but isnt this what the store is meant to be doing?

I would make the assumption that jessops probably get things on a sale or return basis or make somewhere in the region of 30% from a product... so why oh why wont they price match or if they cant price match due to "we wouldnt cover our overheads on less than 30%" cant they include things instead like memory cards or free tripod.. stuff the mark up on is substantially higher?
when I called them last week and said will you price match to web or local store the simply replied NO... Now if they had said "we cant price match... BUT! I tell you what, il give you a half price memory card and a lens cloth" it would have swung the deal for me.
 
Not long ago Dixons was an important photographic store. They then changed their focus and after a long and painful " illness" are now in everything but name are dead.

Jessops Failed to move fast enough when " Digital" and the "online world" arrived, They were hopelessly over stocked with the wrong goods which had become virtually worthless.
They did not follow their solid customer base into the new age.

They were in thrall to their bankers and held to ransom by long term contracts with suppliers and landlords.

They are already dead... and the latest twitches are just late death throes.

They were in a hole and dug deeper...always fatal.
 
Just the same old story of a specialist retailer who's product range is neither impulse buy, low unit cost nor "daily essentials" loosing out to the internet.

Take a look at computer shops or book shops for other examples of how similar things have happened.

The only mistake I can see they made was to plough so much money into it long after it was apparent that this was the trend for specialist retail?

Hardly anybody I know these days buys on the first place they see a high value item - and how many times do you hear people on this forum say "go have a look at it in Jessops then go buy it from the internet"
 
The only one left in Cardiff (far as I know) has just closed its Pro department, bringing all the stuff downstairs. Pity really
 
grumpybadger said:
A shop is frequently going to have higher prices than online, their cost base is higher. I wonder how many people have used Jessops to have a look at stuff and then bought online.
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This is the marketplace today. You need a differentiator, the most obvious of which is knowledgable sales staff, which in my experience Jessops is largely lacking.

The stores are terrible. The Strand one has been refurbished??? It's a dump! The Westfield store, absolute prime retail estate.....I've been in there several times and it is *always* far too hot in there, can't stand it for more than a couple of minutes before escaping to some fresh air. They just don't seem to have the nous to run a retail operation.
 
I agree the internet is a wonderful place where you can buy all and sundry but some things are worth paying more for in store because you can walk back in if there's a problem see a friendly face etc... ironically my tow hobbies Guitars and cameras fall into this category.
I bought a mail order guitar once on a whim thinking this is loads cheaper than in store!
guitar arrived with a twisted neck getting in touch and getting it back to them was a nightmare along with the it wasn't like that when we sent it sir bit.
So maybe Jessops does need to change and meet the needs of its customers but maybe we need to change too we seem to have lost our values of customers service and yea I know ron down at jessops, good guy sold me a... has seemed to have lost its place in our hearts in place of cold hard how cheap can you do it then mate iv seen it on the web for this...
My cousin works for the largest guitar outlet in the country and is burdened daily by people buying on the web then bringing it into the shop saying its faulty can you sort it with the manufacturer for me?
Answer: Hell No you should of come here first and got the good advice and service we provide for £50 more than your web deal.
If Jessops could solve the staff knowledge issue and customer service issues id pay more to know if I had a a fault it would be resolved and that's worth every penny of your above internet price.
 
Sadly though Oska, for every one person who wants service with a sale there are 1000 people who don't.

The other factor of course is that the internet also eliminates the edge of having expert staff too - once again this forum is a good example. Why trust the guy in the shop when you can ask for and get 200 "expert" opinions from somewhere like this? Add a bit of research with Google, visit Ken Rockwell (hahaha!), check out DP Review and what honestly can the dude in Jessops add to it you ask? Pay an extra 50 quid for the guy/gal behind the counter to tell you what? It wouldn't matter if they were Ken Rockwell himself, what EXTRA is it they could tell you about your purchase at that point?

And thats not me knocking "Jessops" or anyone else, thats just explaining how anything but selling expertise itself (ie repairs) isn't something that people will generally do in person.
 
I bought my D300, 10-20 and 24-70 from Jessops, all cheaper than I was able to get online, especially with quidco cashback on top of the discount codes I found. I was able to pick up in store as well, so if I had had any issues I had somewhere I could take it back to easily.
 
desantnik said:
The other factor of course is that the internet also eliminates the edge of having expert staff too - once again this forum is a good example. Why trust the guy in the shop when you can ask for and get 200 "expert" opinions from somewhere like this?
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Yes, I am very glad of the information and experience I have heard whilst reading these forums.

There have been two incidences recently when I have been in a camera shop, where I have almost said to the salesman, that is **** you are saying, give them some real advice.
One was on the shops obligations on faulty equipment, and the other was on what would be best for the customer. The customer knew what they wanted, but were being pushed into a different brand camera, which wouldn't have been compatible (canon/nikon) with what they had already. For no apparent reason.

At least I know from here, if someone does give incorrect advice, then another person will attempt to put the record straight. In a shop, this isn't possible.
 
desantnik said:
Just the same old story of a specialist retailer who's product range is neither impulse buy, low unit cost nor "daily essentials" loosing out to the internet.

Take a look at computer shops or book shops for other examples of how similar things have happened.

The only mistake I can see they made was to plough so much money into it long after it was apparent that this was the trend for specialist retail?

Hardly anybody I know these days buys on the first place they see a high value item - and how many times do you hear people on this forum say "go have a look at it in Jessops then go buy it from the internet"
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Dead right. It's not rocket science is it.

The nature of Jessops business is just not viable in today's internet-led retail environment. You can talk about the quality of sales staff, competitive prices, value-added bundles or whatever you like, but the fact of the matter is that they've tried everything and still the bottom line is that it costs more to get stuff in the back than they get for it when it walks out of the front.

Jessops are a high profile example but the same thing is happening to hundreds of high street retailers all over the country, in all manner of markets. Whatever the mistakes of the past, Jessops' future fate has been sealed by on line retailers, and the likes of me, you, and just about everyone else that buys on line.

The business plan that can save Jessops in anything like its present form does not exist. The model that works today for consumer photography is Warehouse Express - massive on-line business, huge stock, next day service, good prices. And if you want to try before you buy, visit their showroom. Park Cameras are the same, and various others. Ironically, this is exactly how Jessops used to be many years ago before their expansion folly (which happened before the internet was hardly heard of).

The only reason the banks are keeping Jessops afloat is to try to minimise their losses. Right now, the business is worth zilch. All IMHO of course ;)
 
Is it possible to filter Jessops threads so that they are made invisible to me when browsing?
 
The only reason the banks are keeping Jessops afloat is to try to minimise their losses. Right now, the business is worth zilch. All IMHO of course
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And a well know camera company is owed huge amounts of money by Jessops and and have the same bankers :)

It's basically if we go bust we take you down too, so best supply us untill we cantrade out of the debt.
 
does this mean jessops will be selling stuff on the cheap?! at the same time i dont want them going outta business.
 
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