Jessops Just Fell Into the Hands of a UK Retail Giant

Jessops has a new owner, giving one of the UK’s best known photography retailers a new place in a much larger consumer electronics business.

AO World has completed its acquisition of Jessops from Peter Jones, using existing cash resources to fund the deal. The move brings Jessops’ camera expertise into AO while also giving AO access to Camera Jungle, its business selling used photography equipment.

AO is best known in the UK for selling appliances and consumer electronics, so photography represents an adjacent category for the retailer. The company says Jessops will give it specialist knowledge in cameras and optical technology while expanding the range of products available to its customers.

For Jessops, the deal puts the photography retailer inside a company with considerably greater scale and an established online retail operation. AO says it expects the business to grow over the next 12 months by applying its traffic, operational expertise and purchasing scale to the retailer.

The acquisition also comes as specialist camera retailers continue to operate in a market shaped by smartphones, changing consumer habits and a strong interest in used equipment.

Camera Jungle Could Be the Bigger Piece

Jessops’ recommerce operation, Camera Jungle, gives AO another reason to make the acquisition.

Used camera equipment has become an important part of the photography market, offering photographers access to older cameras and lenses at lower prices while giving existing owners a way to sell equipment they no longer use. Camera Jungle fits with AO’s existing ownership of musicMagpie, which specializes in buying and reselling used technology and entertainment products.

AO describes the businesses as complementary and says the combination strengthens its position in the circular economy.

That could give Jessops a role beyond selling new cameras. Used cameras, lenses and accessories create a separate source of inventory and bring customers into the market who may not be looking to buy new equipment.

What Happens to Jessops Next?

AO has not announced major changes to the Jessops brand or detailed how the retailer will be integrated into its wider operations. For now, the company says it plans to use its scale and operational capabilities to improve efficiencies and support growth.

AO also reported that group revenue increased by more than 5% in the first half of its financial year, while profit rose by more than 20%. Those figures provide some context for why the company is expanding into additional categories while looking for new sources of growth.

For photographers, the more interesting question is what AO does with the specialist knowledge and customer base it has just acquired. For a camera retailer, bigger does not automatically mean better, and photographers will be watching what changes next.

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