Camera specialist Jessops is finally catching up with the sector in which it operates. Selling cameras – which these days are updated at a similar rate to mobile phones – requires a fast-paced and flexible operation. And that is what executive chairman David Adams is striving to achieve.

For years, Jessops let its competitors run rings around it, whether it be through price promotions from online operators or the top-notch customer service of John Lewis. Compared with such operators, Jessops looked lost.

But Adams has managed to get Jessops on a firmer footing and is now gearing up to reposition the retailer around a customer-led proposition based on “image enjoyment”.

Gaining a stronger financial footing is an important advance. Jessops has secured an outline£49 million agreement with HSBC to provide a new medium-term banking facility, which Adams labelled a “huge step forward”.

Closing underperforming stores will also help. Sales slumped 24.7 per cent to£134.8 million for the six months to March 30, reflecting the closure of 81 stores, and the cost base of the remaining shops is also being addressed. Further cost-base savings this year are expected to amount to£1.5 million. These initiatives are on top of reductions in head office costs and stock.

Adams is now ploughing ahead with the next strategic phase by investing£650,000 in testing three new store formats. The models cover a range of consumer demographics, helping Jessops find its niche. The World Camera Centre will appeal to professional photographers and provide an Aladdin’s cave of cameras and accessories, while the Heartland stores will focus on branded product displays for hardware and accessories. Jessops Lite will cover the more popular digital cameras.

These trials show a commitment to the market and a willingness to adapt for survival. Critics have said in the past that Jessops was doomed because of intense competition among the electricals operators, but Adams is now desperately applying mouth-to-mouth resuscitation.

Jessops’ current trading remains very challenging. And, while the retailer said it is on track to meet its expectations for the full year to September 30, there is likely to be a small loss before non-recurring charges and finance fees. While the economic climate continues to toughen, Jessops has taken action to offset the worst effects through cost savings and efficiencies. It is now banking on its new formats to spruce up its once-dusty image.

Jennifer Creevy is news editor of Retail Week

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