It will never last...
I was speaking with David Pickering, CEO of Charteris at a breakfast briefing recently when the subject of Jessops came up. We both agreed that we didn’t want Jessops to go out of business as we found their stores a really useful source of advice and information but were equally worried about how they would survive given the financial performance they had been experiencing [when we spoke]. So yesterday when I read that Bloomberg reported Jessops losses had widened my concern increased and I decided to carry out some desk research of my own.
Sales in store have fallen 11% in the past three weeks. That is not that surprising when you consider the prevailing market conditions and gross profit percentage is up. A year ago the company announced that it would close 81 stores, 31 of which were loss making and with these changes in place the company still expects to report improved EBITDA figures on last year. A big problem however is the level of debt they need to service. Borrowings are at £52.26m and although they managed to restructure the debt with HSBC they will have to make a payment against the £49m of senior by spring next year according to FT.com. Even a year ago Jessops was being referred to as a ‘Private Equity Disaster‘ although despite the results Chief Executive David Adams is optimistic about the future.
So they have a lot of big problems and have taken extreme measures to cut costs and do the normal things companies do when they are going slowly down the toilet. But in my view, they are still worth saving. Why? Because they are one of the few high street retailers that are truly specialist. If you visit Jessops and you are interested in photography you will be met by employees who on the whole are passionate about photography and happy to spend time with you helping you. The problem is this doesn’t make you any money when the product has become commoditised and online competition is fierce. And it is this, the multi-channel elements of their retail strategy that in my view they get most wrong.
On Saturday I tried to do my bit to save Jessops. I had 3 digital photos to print: two 10″ x 12″ and one 7″ x 5″. Online, including delivery in 24 hours (which is real as I have used photobox before) the price £4.09. At Jessops each of the large photos was over £4 (the 3 day services £3.49 and 1 hour £6.99). These prices are available on the website as the link in the last sentence indicates.
On the same website I can link to Snapfish, Jessops online photo business and be offerd an 8″ x 10″ print for £1.25. Snapfish is in fact an HP business and the arrangement with Jessops has existed since 2006. Jessops have actually done something quite innovative by connecting the web with stores and providing a ‘reserve and collect’ services. The problem is the pricing and also the lack of specialism. Why would you pay a premium to order one day and pick up in store when it is cheaper to order and have a home delivery where they have no differentiation?
The website is completely “off” brand experience. There is no content beyond products for sale. If you type ‘advice’ in the site search you get a message that “nothing was found matching your search criteria”. The only link with the store are the prices of products or so it would seem. In fact when I navigated to the photos tab and then once in selected ‘photos home’ I was presented with a range of specialist in-store services. The usability of the website surrounding this content is so poor however that I can’t believe many find it. Interestingly there is listed here a further service that I have experience of.
I wanted my wedding video transferred from VHS to DVD. I went to Jessops (another opportunity to save them) and was told by the incredibly helpful and knowledgeable assistant that a store round the corner did it and Jessops didn’t. Thanks I said and took my £40 round the corner. According to the website this is a specialist service provided in store and a further demonstration of multi-channel strategy being poorly implemented.
Nor is the website well marketed and I wonder if this is an indication that where online is concerned, Jessops are not expansive in their thinking about what business they are in. If you search for “photography” in Google.co.uk, Jessops don’t appear on the first page at all. Changing the search phrase to “camera” and they come second in natural search, but have no paid for advertising. It is no coincidence that there is no photography content on the site.
In 2007, when commenting about the cuts Jessops were making David Adams, said: “The strategy allows us to re-position Jessops as a true multi-channel retailer, building on our core strengths in the digital imaging market place.”
It appears to me they have precious little strength in the digital imaging space and are not a multi-channel retailer. For sure they have multiple channels but they may as well be two separate businesses. I want to save Jessops but as a consumer I am struggling to work out what I can do to keep them alive.
I bought a new camera last year from Jessops and found the Jessops website pretty poor. They don’t have to go overboard on web 2.0 stuff, but they should try to create some kind of online experience that’s more satisfying that crawling through a brochure.
I think there is still a market for camera shops – you need to try a camera before you can buy it with confidence, and I can’t be the only one who wouldn’t want to have a new camera sent in the post.
Jessops film processing and printing services have always been uncompetitively priced – even compared to other shops like Boots. But if they could make that offering attractive, they would have a way to sustain a relationship with photographers before they’re ready to buy a camera. The problem is that for most customers there’s no real brand loyalty, because they don’t buy a camera often enough to visit Jessops very often.
Perhaps Jessops could run free workshops on different aspects of photography – it would be fun for the team to do this, and would bring people into the shop more often. They could also create a customer newsletter with photography tips and links to great online portfolios and could arrange local photo competititons with the first prize being a poster enlargement.
It’s difficult to invest when you’re in a weak position, but the company needs to completely rethink its relationship with customers and the kind of shopping experience it offers. There’s no future in just sitting there waiting for someone to pick a camera online and walk into a shop to buy it.
Jessops need to improve their service standards, and treat customers as they would expect to be treated. Note the demise of DSGi. They treated their customers like scum. I bought a Fujitsu Siemans laptop from Jessops Edinburgh on 18/03/2006. The laptop never functioned properly from purchase. Jessops would not deal with it, and referred me to Fujitsu Siemans for servicing 3/2007. After the 1st service the laptop still had the same faults, froze, and reverted to the French Alphabet randomly. After the 2nd service the laptop was noisy, overheating, and the screen was red on startup. I cut the power, and phoned Fujitsu Siemans again. I was told ‘ something has been left inside by mistake’ ‘just pack it up now, don’t use it’ ‘ .After the 3rd service the laptop was returned outside its years guarantee with the same faults. Meantime I used my home PC and had to purchase a reliable laptop elsewhere. 9/2008 I switched on the Fujitsu laptop. After startup the screws and components could be seen as the screen turned black. There was a burning smell. I cut the power. Fortunately I had not left the room, and was able to deal with it.. I complained ‘Sale of Goods Act’ . Jessops letter… average lifespan of a laptop 60 months, divide £1199.99 by 60 = £19.99 x 26 months usage = £520.00 = partial refund of £679.99. Laptop to be collected, then payment by cheque. I contacted Barclaycard for a refund of £1199.99 since I have Fujitsu Siemans 3 service reports, and an independent PC engineers report stating the motherboard was always faulty. Components were replaced , on each service, the laptop was further damaged due to their error on the 2nd service, damaged components changed again, then the laptop was returned to me, posing a fire risk in my home. The Laptop involved Fujitsu Siemans AMILO M3438G / BU M3438G/ PM 760. Jessops said this is our final offer. A manager said it should have been a third party sale, sent to your home not the store. Fujitsu Siemans computers in the catalogue, but nothing to do with Jessops! Quality service indeed. Not No 1 in customer service guaranteed. Fujitsu Siemans? Can anyone trust their servicing standards?
Walking in the prsecnee of giants here. Cool thinking all around!
“If you visit Jessops and you are interested in photography you will be met by employees who on the whole are passionate about photography and happy to spend time with you helping you”
Well i’ve just got to this article via a google search ‘Jessops poor service’ and would sharply disagree! went in there for the first time at lunch to enquire about budget SLR camera. Guy looked like he couldnt be arsed and didnt give me any decent information. i then asked about a deal I’d seen on their website which he didn’t know about. He checked at his terminal which promptly crashed so we ahd to go to another terminal. He then said that all the parts of the offere werent in stock. i asked when the case (the missing part) would be avaialble. he said he wasnt sure. i asdked for an estiamte. he said something along the lines of ‘well its supposed to be 28 days but sometimes people wait longer than that’ which is a aptehetic answer. At this point I left the shop and will find a camera shop where they know what they are talking about!
apologise for my atrocious spelling there!
I don’t think the knowledge and expertise of the staff at Jessops is as high as it once appeared. I have been into 2 stores recently to buy a camera and have been very disappointed with the quality of assistance I received.
I have overheard conversations while waiting for assistance that sounded informative and useful but I seem to end up with the sales assistant who barely knows the basics and hasn’t been overly helpful.
Seems to me that Jessops have rested on their laurels and let standards slip.