AO, an online electricals retailer, has acquired Jessops, a specialist photography retailer owned by Peter Jones CBE, a star of the TV show Dragons’ Den. The acquisition is part of AO’s strategy to expand into adjacent categories.
The deal includes Jessops’ recommerce business, Camera Jungle, which will sit alongside AO’s existing musicMagpie business, strengthening the company’s circular economy credentials. Mark Higgins, AO World’s group CFO and COO, said the acquisition is funded from existing cash and adds a complementary category to AO’s range of electricals.
AO was launched in 2000 by John Roberts and has since grown into a successful online retailer. The company recently launched AO Mobile, offering plans from as little as £12 a month. The acquisition of Jessops marks AO’s latest move into new categories.
Founder John Roberts said the company has carried its momentum into the new financial year, with group revenue up over 5 percent and profit up more than 20 percent. AO has also given over £29m of discounts to its members, demonstrating the success of its shared economics model.
AO plans to continue growing the existing Jessops business and integrating the category into the wider AO business. They are firmly on their path to achieving a 5 percent PBT margin and have clear growth and efficiency initiatives in place to make this happen.
Despite uncertainty in the world, AO looks forward to heading into peak trading with confidence and momentum behind it. The company has maintained its world-class Trustpilot score of 4.9 out of 5 on over a million reviews, demonstrating its commitment to customer service. John Roberts and his team are focused on continuing to deliver strong results. The acquisition of Jessops is a significant step in AO’s expansion into new categories, and the company is well-positioned to continue its growth trajectory, with a strong focus on customer service and a commitment to sharing its scale economies with its members.