Jessops Sold to AO World as Retail Sector Faces Downturn

Dragons' Den investor Peter Jones has sold the camera retailer Jessops to AO World, the online electricals supplier announced. Jones originally rescued Jessops out of administration in 2013, reopening numerous stores. However, the company faced subsequent administrations in 2019 and 2021 due to shifts in the camera market, leading to its current state of eight stores, a significant reduction from its peak of over 250.

AO World founder and chief executive John Roberts stated his delight in welcoming Jessops to the AO family, expressing plans to grow the existing business and integrate the camera category into AO's broader operations. The acquisition aligns with AO World's strategy to expand into adjacent product categories, aiming to provide customers with more reasons and opportunities to increase their spending. Despite the acquisition, shares in AO World, which also purchased online retailer Music Magpie in December 2024, saw a 4.5 percent decline as the company issued a more cautious outlook for its second-half trading performance.

Separately, furniture retailer DFS has issued a warning about the economic outlook, citing a 2.6 percent drop in sales over the past 12 weeks. This update comes as broader retail data indicates a significant decline in sales orders. The CBI reported that retailers experienced their largest fall in sales since April and reduced orders from suppliers at the fastest rate recorded since 1983. Martin Sartorius, lead economist at the CBI, noted that the persistent sales downturn appears to have prompted retailers to cut back on order volumes at a survey-record pace.