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Jessops reopens six stores under new owner Peter Jones of Dragons' Den
Jones, who will take on the roles of chairman and chief executive, has launched six stores, including the Oxford Street flagship. Up to 30 more stores are set to open throughout April, following a 4m investment. Jones rescued Jessops out of administration last month after it collapsed in January, closing 187 stores. The retailer had struggled to trade due to the growing popularity of camera phones and a tough economy. He believes the high street is fighting back, following the buyout of Blockbuster and British Retail Consortium figures which showed a 2.7% year-on-year increase in shoppers on the high street in February 2013.
Discount retailer, B&M Bargains, has released double-digit growth in both sales and profits for 2012
B&M Bargains posted an increase of 31.5% to 937.2m in the full year to 31 December 2012, while Pre-tax profits grew by 43% to 90.6m. It also extended its portfolio from 271 to a reported 324 in the same period. B&M has consistently outperformed the market with sales growth of 17.4% reported in 2011 and 43% reported in 2010.
SO WHAT SHOULD WE DO? 1. The first quarter of 2013 has seen mixed fortunes for the UK high street. A number of high profile chains have been forced into administration and the number of vacant premises is at an all-time high. There have been a handful of winners however (particularly those selling electrical and discount goods) and footfall is beginning to trend upwards. The recent resuscitation of both HMV and Jessops is evidence of a renewed confidence in the high streets future, though most analysts would concede that it will need to change substantially to survive long-term. Showrooming is becoming more commonplace, with consumers keen to try before they buy, though choosing to convert the sale itself through an online channel for a reduced price. As a result, we need to help our clients leverage the benefits of physical shopping (immediate availability of goods etc.) in order to complete with the etailers. There is an opportunity to support both very high and very low value goods, with some consumers still unwilling to make large purchases over the internet and with small ticket items thought too low value to warrant the effort of searching for cheaper price points online when they can just be picked up in store.