The camera retailer Jessop, reeling under tough trading conditions, saw its share prices crashing down to 30 per cent. The high-street retailer issued fourth profit warning yesterday saying that its like-for-like sales of 41 weeks, ending 13 July, were down by 5.7 per cent.

Jessop had earlier announced fall of 5.0 per cent in its six months’ sales up to 30 March, 2008. The performance has since then gone from bad to worse.
The board is apprehending big losses which will be worse than £7.5m registered last year. Yesterday’s profit warning was the fourth since beginning of the last year when its shares were priced at 150p. The shares closed at 5.68p on 15 July, down by 2.27p.
David Adams, executive chairman, who was entrusted with restructuring of the group in May, 2007, attributed the present woes to uncertainties in the market. He explained that until restructuring last year, the company had lost sight of its customers and pursued crazy policies.
According to Mr. Adams, the company has undertaken various measures including reduction of stocks, closure of 81 stores and abandoned sale of satellite navigation systems. He however expects strong sales during Christmas shopping period.

The latest sales figures, despite good weather, indicate fall of 11 per cent in the last 3 weeks. Jessop’s fall is much worse than average 0.4 per cent of general retail sales of June, reported by British Retail Consortium on 15th July.

Things to consider:
Sales Skills