Wednesday, 6 June 2012

UK retailer Jessops issues 2011 results

In what appears to be an effort to counter the recent rumor reported on several sites claiming Canon UK provided £10m for equity in the UK retailer, after allegedly citing a downward trend in sales and profit to online retailers, high-street retailer Jessops has today released "encouraging" results from the company's 2011 accounts.

Press release

Jessops 2011 Accounts

Jessops is delighted to announce its results for the 52 weeks to 1 January 2012.  In a very challenging year that saw the devastating Japanese Tsunami in March and the Thai floods in October causing severe product supply challenges, I am pleased to announce that Jessops grew sales by 3% to £236.8m with like for like sales growth of 1.3% against a digital camera market backdrop of (7)% decline.

Sales growth was accompanied by margin improvement and strong cost control resulting in an increase in EBITDA from £4.0m in 2010 to £5.7m in 2011.

Jessops has continued to drive market leading shares in the DLSR, CSC, Lens and Accessories categories and saw significant growth in the DSC category too.  Jessops experienced 13 months of consecutive market share growth in the Total Digital Still Cameras Sector*.

Growth has been delivered as a result of significant investment in staff training and knowledge, a commitment to invest in the refurbishment of the store portfolio and further development of the online platform.

During the year a further 20 “black” store refurbishments were completed and 6 new stores were opened.  The refurbished and relocated stores delivered an uplift of over 20% on pre-refurbishment sales.  The new stores have widened Jessops appeal, retaining existing customers and attracting more younger, older and female customers to the store.  Customer dwell time and visit frequency has also improved.

Jessops online business grew by 79% in the year following growth of 100% in 2010.  Online now accounts for 32% of total business with 70% of online customers choosing to collect their products in store.  This provides Jessops with an opportunity to build strong customer relationships and attach the appropriate accessories and photo services to camera purchases.

Jessops continues to drive innovation in its photo business making it more accessible to a broader customer base with initiatives such as our order online and collect at store, in-store large format printers enabling wall art to be produced within an hour, photobook design services, iPhone and iPad apps, a range of high quality instant gifts and UK and International passport photo services.  Our Photo Legacy service will land in June, enabling customers to safely scan, store and reprint old negatives and images and our cloud storage service will be available in the last quarter.

Trevor Moore, CEO, Jessops commented “2011 was a difficult year for retailers and 2012 is expected to remain challenging.  Jessops will continue to develop its knowledge and service based proposition by investing in its people.  We will work to optimize our store portfolio and invest in a further 25 store refurbishments.  The online platform will be evolved to include a new mobile and integrated photo platform.  Jessops will continue to work closely in partnership with its suppliers to present new technology and innovation to the market with the aim of being the best channel to market for our suppliers and the first choice destination for all our customers imaging needs.  We remain cautiously optimistic in the outlook for 2012.”

* According to the GfK Photo Panelmarket April 2011 to April 2012 in value terms, compared to the same period the previous year. Total Digital Still Cameras is the aggregation of DSLR, CSC and Compact

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