Revenues up 3% despite "very challenging" year for photographic retailer
Photographic retailer Jessops has reported a three per cent rise in revenues for the 2011 year as online sales rose by 79 per cent.
For the 52 weeks to January 1 2012, Jessops posted revenues of £236.8 million, despite a seven per cent drop in digital camera sales in what was a “very challenging” year.
Supply had been “severely challenged” as a result of the Japanese tsunami in March 2011 and then floods in Thailand in October 2011.
Earnings before interest, tax and other accounting charges rose nearly 30 per cent to £5.7 million against £4 million in 2010 on margins improvements and cost controls.
A total of six new stores were opened in the past year and a further 20 were refurbished.
Jessops, which operates around 200 stores nationwide, including 11 in Scotland employing around 80 staff, said the refurbished and relocated stores delivered a sales uplift of more than 20 per cent on pre-refurbishment sales figures.
A further 25 store refurbishments are planned for this year.
Online sales rose by 79 per cent last year following growth of 100 per cent recorded in 2010.
Online now accounts for 32 per cent of total business with 70 per cent of online customers choosing to collect their products in store, which Jessops said is helping to build stronger customer relationships.
Its photo business has launched new initiatives such as online order with store collect as well as in-store large format printers enabling wall art to be produced within an hour, photobook design services, iPhone and iPad apps and international passport photo services.
A new Photo Legacy service will also launch later this month which will allow customers to scan, store and reprint old negatives and images.
Jessops will also launch a cloud storage service in the last quarter of this year.
Chief executive Trevor Moore said: “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 optimise 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.”