Steve Hawkes
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Jessops, the troubled photographic retailer, is eliminating more than 200 jobs only months after closing nearly a quarter of its UK stores.
David Adams, executive chairman, said that further cost cuts were needed because of the “difficult and uncertain” trading environment that has seen sales tumble in the past year.
The cuts will affect up to 8 per cent of the workforce, with assistant managers expected to be laid off across the Jessops store estate. Some roles at the head office will also go.
Jessops laid off 550 staff last summer in a rescue plan under which it closed 81 of its 315 stores to save £15 million a year.
The group has been hammered by fierce competition from the supermarkets and internet rivals and has been trying to focus on higher-margin products, such as digital printing.
A trading statement today showed that like-for-like sales fell by 5.1 per cent in the 25 weeks to March 22 with total sales down nearly 25 per cent after the store closures.
Mr Adams insisted that the group was still on track to meet its expectations for the financial year, given that stocks have been cut significantly.
The shares crept 0.1p higher to 7.45p.
He added: “Our trading performance reflects the difficult and uncertain environment we operate in and we continue to take actions to reduce the cost base of the business.
“These actions today, plus the restructuring activity undertaken in the second half of last year ... should benefit the business as we move into the second half of this year.
“The board remains confident that the group is on the right track to build sustainable profitability.”
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Jessops as a store, thats has a good range of staff, from SALES to Photographer can work but price, product range and sales technique will end this brand soon. People will buy from the internet and this will kill off most highstreet trading, but jessops lack sales staff and seem only to have out of work or student photographers, non of the staff get real sales training or product training in comparison to that of dixons group, (i have worked for both) yet through sheer egerness will know the ins and outs of a camera, hence people will use them as information only
Low margin products are not the way to go, they are badly made i.e Kodak and will cost more in fixing and repairs (not the actual repair as that will be upto the manufacture but in postage and haulage) people will buy from supermarkest but more fool tham, they camera range is of low grade and offten of old stylings, but if your happy then good. jessops printing is naff, asda have always done better prints! restructure!!!!!!!
ben, london, uk
Jessops is another mid market retailer that there is no room for anymore.
What Adams and co, fail to realise is that the majority of footfall will walk into a Jessops, ask about the features of a specific camera, find out all about it and then buy the camera from an internet retailer for 30% less. The public aren't stupid.
Adams is pursuing a flawed strategy of continuing to operate in the same market, when in fact he should be re-branding the business (The name Jessops conjures up an image of overpriced goods in old fashioned overstaffed stores) and aiming at a lower margin but higher volume sector.
I bet if I opened up a shop right next door to a Jessops called 'CameraSavers - 50% off' Jessops would be empty all day.
Another thing is that the growth in the digital market has pushed the average age of a camera user lower - and what is it that younger people seek - 'COOLNESS'
There is nothing COOL about Jessops - Sorry.
Joe W, Bristol, England