As Dragons' Den judge Peter Jones re-opens Jessops, the photography retailer he bought after it collapsed last year, other entrepreneurs offer him advice.
Simon Hill, founder, Wazoku:
"It is too simplistic to say that Jessops ran into difficulties because it didn’t properly address the digital market. The real reason it failed was a lack of innovation and realising way too late the game was up – the same could be said for fellow troubled retailers HMV and Blockbuster.
"Large retail outlets have legacy costs and outdated organisational structures so modernising and finding a role for high street retail in 2013 has to be the main challenge for Peter Jones. He won’t be able to compete on price with online photo services, so needs to unearth some other innovation, whether that is offering a new service, a more convenient method payment, restructuring the supply chain or something else entirely. One thing is certain – if Jones succeeds it will be one of his greatest business achievements."
Guy Mucklow, CEO, Postcode Anywhere:
"Jessops can no longer afford to rely solely on shoppers buying from their physical store. A successful offering is likely to see them expanding and strengthening their traditional offering into a multichannel approach, incorporating both mobile and social commerce in order to provide new avenues to convert sales, while also benefiting from the competitive pricing of ‘click and collect’. It’s not a case of ‘either /or’ when it comes to physical stores and ecommerce. Jessops needs to ensure that if people go into their stores and leave with the intention of buying online, the online store is at the forefront of everywhere they look.
"There's no doubt that technology is the key driver for change in the retail market; from self-service checkouts in a local supermarket, through to being able to ‘try on’ jewellery using an augmented reality mobile application. But none of this matters without a well-placed and user friendly ecommerce site. This will be the key to Jessops' future success. Online should work in harmony with the high street store – not hinder it."
Jan Shure, co-founder, SoSensational.co.uk:
"While we applaud Peter Jones' confidence in the high street and his new brand, as an online shopping portal – albeit in a very different field – we believe he has got the process the wrong way round.
"He should be capitalising on the expertise to be found in Jessops branches by encouraging consumers to visit the shop to consult with the specialists. They should then be able to order online while in the shop, and have their merchandise delivered to their home, perhaps with incentives such as free delivery and a discount for ordering there and then. In failing to take this course, we believe consumers will use the Jessops expertise and then go home and buy from the cheapest online retailer, thus perpetuating the situation which led to Jessops failure."
Martin Philpott, head of retail, IMGROUP:
"The low end camera market is shrinking dramatically. Most people have good quality cameras in their smartphones now and are just not spending money on £100-£200 cameras anymore. Jessops needs to target the higher end market with cash to spare, who will spend £500 and above on a camera. In order to do this effectively they need to employ camera experts who know about photography and offer excellent customer service, looking to John Lewis as a great example.
"'Showrooming' is a particularly damaging retail trend which Peter Jones will need to address. This is when a customer enters an offline retailer, gets advice from a sales assistant and then goes home and buys the product at a lower cost online. In the U.S shops have actually started charging a small fee to offer this advice which can then be reclaimed when you purchase the product from them.
"Finally, Peter Jones needs to open less stores, perhaps a flagship store in each major city centre and invest heavily in their online business. In the past, Jessops has offered virtually no multi channel retail experience. They need to invest in building the connection between their offline and online businesses. The future lies in a combination of these approaches – clicks and bricks need to work together in today's challenging retail environment."
About Dan Martin
Dan Martin has 10 years experience as a journalist writing about entrepreneurs and the issues that affect them.
After three years working as a researcher for Sky News, he joined BusinessEurope.com as a reporter. This was followed by two years working as news editor for Startups.co.uk during which time Dan also contributed to Growing Business magazine. In 2006, he joined Sift Media as business editor before being promoted to editor of BusinessZone.co.uk. He also has responsibility for UK Business Forums, the UK’s most active online forums for small business entrepreneurs. In addition, Dan founded The Pitch, BusinessZone.co.uk's nationwide competition for small business owners. He host the grand finals in 2009 and 2010 in front of an audience of 300.
As well as interviewing many entrepreneurs, Dan has written content for leading business organisations such as the Department for Business, Enterprise and Regulatory Reform, British Chambers of Commerce, Forum of Private Business, Investors in People and Business Link for London. Among the publications that have quoted Dan are The Times, Mail On Sunday, Financial Times, Personnel Today and Bristol Evening Post. His articles have also been published by publications including eGov Monitor, Virgin Express in-flight magazine and Personal Success.
Dan regularly speaks at events about small business and social media issues. Among the events he has presented at are the National Federation of Enterprise Agencies' annual conference, Learning Technologies, Publishing Expo and World of Learning. He has also chaired high profile debates featuring senior representatives from Business Link and the Federation of Small Businesses and Dragons' Den judge James Caan.
Dan was named the 10th most influential political blogger on Twitter by the Independent and won the public award for best B2B tweeter at the Golden Twits 2010. He also organised the Bristol Twestival, part of a global Twitter driven charity initiative, in February 2009 and March 2010. Volunteers from 175 cities around the world organised events using the social network. In total, $350,000 was raised for charity: water in 2009 and $500,000 for Concern in 2010. In Bristol, £1,500 and £5,600 was raised.