Jessops

In an increasingly competitive and fast-moving product area, Jessops, a leading UK retailer of photographic equipment and accessories, experienced a downturn in sales, which led to some stores becoming unprofitable and an excess of rapidly ageing inventory.

Gordon Brothers initially worked with the management team to analyse the store portfolio and identify the underperforming stores – and those stores with little prospect for recovery – which could be closed in a structured and managed way.  39 stores were identified and a plan established to effect their closure in the most cost effective way - and to an agreed timescale.

Concurrently, an exercise was undertaken to identify old stock lines across the whole group that were of diminishing value.  £16 million of excess inventory was identified and a plan established to dispose of it jointly, through the stores planned for closure and through a wholesale route to market. 

The programme cleared £5.5 million of stock through the wholesale channel and the balance through stores.  Stock cleared through the wholesale channel was bought by Gordon Brothers at a significant percentage of cost. 

Gordon Brothers’ demonstrated flexibility in the management of the wholesale logistics process, by sorting the majority of the wholesale inventory at its own premises, rather than at Jessop’s distribution centre.  An additional benefit for Jessops was that, by using this route to market, Gordon Brothers introduced a wholesale client base that Jessops will be able to use in the future, particularly to clear old and obsolete inventory.

Product discounts in the closure stores were subject to micro-management at department and store categories by Gordon Brothers’ finance and operations teams, to ensure both the highest possible recovery value from the stock and closure in a ‘broom-clean’ state on the planned closure dates.  Discounts were supported by local marketing – including camera clubs, schools and colleges - as well as national advertising and a high-impact signage package in stores.

Peter Riordan, Retail Director at Jessops, said, “Gordon Brothers were an instrumental partner in assisting Jessops through one of its most challenging phases. The Gordon Brothers’ team worked effectively to achieve our joint objectives and time lines.”