Do you think the collapse of Jessops signals the the beginning of online-only camera purchasing?
The beginning of 2013 brought with it the sad news that high-street camera retailer Jessops had gone into administration. The company was forced to close its 187 stores, resulting in the loss of about 1,370 jobs, and trading has also ceased on the firm’s website.
The collapse of Jessops came after the company reported a huge £5.2m loss in 2012. A decrease in demand for digital cameras due to the improving quality of smartphone cameras has been mentioned as one possible reason for the fall in sales. However, many having been pointing the blame at competition from online retailers, with Jessops unable to match their low prices.
Of course, it is not just Jessops that has suffered, as the UK’s largest independent photographic chain, Jacobs, collapsed in June 2012, followed by electrical retailer Comet at the end of last year.
So could the closure of these bricks-and-mortar camera retailers signal the the beginning of online-only purchasing? Or do you think camera retailers will always have a place on the high street?
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I run the beginners websitw http://www.point-n-shoot.co.uk. In my opinion, the major British retail chains have long been overcharging for goods. In the late 1990′s Tony Blair’s government looked into the electrical retail trade, and forced the manufacturers to cut prices on electricals (including digital cameras, computers TV’s and hi-fi’s) by about a third. Fast forward to 2012/13 and the High Street chains are as ever, trying to keep prices artificially high. My stepson used to work for two major high street retailers (they sold cameras and other goods}, and a major DIY chain. He stated the net cost of an item was typically 25-35% (before expenses and VAT). I took this to mean that a camera selling for £99.99 would cost the chain between £25-£35.00. It may sound an obscene profit, but tax and costs would double the cost. Yrt the retailer will still have a large profit margin. Over the last 15 years, the advance of internet access has opened up new tarading avenues without the overheads of stores and staff. The High Streets roll in this time has been one of ‘See, want, get now’ without the need to wait. The advent of free and inexpensive ‘Next day delvery’ for website purchases mean you don’t need to go shopping anymore. If the shop price was a cheap as the online only retailers then it’s a level playing field. If online merchants took a week or longer to get your goods delivered then you might pay an extra £5-10.00 to get it straight away from the high street. However, the web only retailers are often much cheaper. I think people are prepared to wait a few days to get a much cheaper price. I went on Amazon two weeks ago and ordered a Canon compatible remote control (over £15.00 on the UK high street for the Canon original) delivered free from Hong Kong for £2.19. Did Jessops get these remotes in stock? If they had (their buying power would probably mean they could sell them for that price) they would have sold loads. Filters, flashguns, tripods, camera bags (a Neewer DSLR case was selling for £2.00 on Amazon last summer) and even lenses are significantly cheaper online. No wonder Jessops (and the larger Jacobs last October).
10 years ago Jessops produced a glossy cataloge three or four times a year. For the past three years I haven’t seen a single catalogue in my local store, they were always awaiting copies whenever I asked for a copy Expect several other high chains to go under soon.
I don’t like taking photo’s with camera phones because it seems to eat up the battery, the thumbnails are so small you can’t enlarge them or do anything with them to be honest. Nothing beats a camera. Not being rude about Jessops, but some of their customer service skills were pretty awful, and half were only out to make money and knew nothing about cameras.
A lot of shops like Argos have gone click and collect which is a really good idea. You buy online and collect in store.