Electricals chain AO World has acquired struggling camera retailer Jessops from Dragons' Den star Peter Jones. The company did not disclose the purchase price but said it was funding the deal from "existing cash resources".
Strategic move into adjacent categories
The group said the move supports its strategy to grow into "adjacent categories, giving customers and members more reasons to shop with AO and increase our share of wallet". It follows AO World's acquisition in December 2024 of Music Magpie, which buys and sells refurbished electronics and used computer games, consoles, books, films and music.
AO World said: "Jessops brings a trusted brand and specialist expertise in cameras and optical technology, while its recommerce business, Camera Jungle, is highly complementary to our existing Music Magpie operations and further strengthens our circular economy credentials." The company said the Jessops business is set to grow in the next year as it uses its existing operations and scale to help boost trade and drive savings.
Jessops' troubled history
TV star and investor Mr Jones rescued Jessops out of administration in 2013. He reopened a raft of stores that had been closed, but the ailing firm collapsed into administration again in 2019 and then a further time in 2021 amid the shifting camera market. It now has just eight stores out of a previous network of more than 250 at its height.
AO World founder and chief executive John Roberts said: "I am delighted to welcome Jessops into the AO family and look forward to growing the existing business as well as integrating the category into the wider AO business."
Shares drop on cautious outlook
The deal was revealed as AO World said half-year profits are expected to jump over 20% higher to around £21.5 million as group sales are set to rise by 5.5%. However, shares in AO World dropped 8% in morning trading on Thursday as it gave a more cautious outlook on second-half trading.
The company kept its full-year outlook unchanged amid forecasts of "a more challenging comparative environment" in the final six months and planned investment, sending shares lower. Mr Roberts said: "We've carried our momentum into the new financial year with continued growth against a sluggish backdrop in the wider UK retail sector."
