Heavy losses in focus at struggling Jessops

Lots of news every day about how the economic downturn is affecting UK retailers - but the problems faced by Jessops seem to be more fundamental than just a decline in consumer confidence…

A financial update from specialist retailer Jessops today highlights the problems faced by well-known high street brands. Sales are falling significantly, and Jessops is now forecasting higher losses than the £7.5m incurred last year. Take a look at the trading update to see just how bad the figures are.

Jessops is an interesting case study. The business has a clear focus - specialist retail of photographic equipment and consumables - but it is caught in a competitive pincer movement. Both the major supermarkets and specialist online retailers are undercutting it on price. New management at Jessops have been trying for some time to reposition the business, closing branches and rationalising the product range. Now they have been caught by a sudden downturn in consumer spending. Jessops management must be wondering when their luck will turn…