AO World has acquired camera retailer Jessops from Dragons’ Den investor Peter Jones as the electricals group seeks to expand beyond its core business, while warning that tougher trading conditions could weigh on the second half.
The online electricals retailer did not disclose the value of the transaction, saying it would be funded from its “existing cash resources”.
AO said the acquisition supported its strategy of expanding into “adjacent categories, giving customers and members more reasons to shop with AO and increase our share of wallet”.
The deal follows AO’s acquisition of Music Magpie in December 2024, giving the group an established business in refurbished electronics and used technology.
Jessops adds specialist camera and optical products to that portfolio, while its Camera Jungle recommerce operation provides a further link with Music Magpie’s second-hand electronics business.
AO 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 group expects the Jessops business to grow over the coming year as it applies its existing infrastructure and scale to increase sales and identify cost savings.
The acquisition comes as AO reported stronger first-half trading but adopted a more cautious tone about the remainder of its financial year. Shares fell about 8% in morning trading after the company maintained its full-year outlook and warned of “a more challenging comparative environment” in the second half, alongside planned investment.
AO said half-year profits were expected to rise by more than 20% to about £21.5mn, while group sales were forecast to increase by 5.5%.
John Roberts, AO World’s founder and chief executive, 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.”
He added: “We’ve carried our momentum into the new financial year with continued growth against a sluggish backdrop in the wider UK retail sector.”
The acquisition marks another step in AO’s effort to broaden its customer proposition and build a larger ecosystem around consumer electronics.
Jessops brings a long-established name in the UK camera market, but its history also highlights the structural pressures facing specialist retailers as consumer behaviour and technology change.
Jones rescued Jessops from administration in 2013 and reopened a number of stores that had previously closed. The retailer subsequently returned to administration in 2019 and again in 2021, as the traditional camera market faced increasing pressure.
At its peak, Jessops operated more than 250 stores. It now has eight.
For AO, the attraction is not simply the physical camera business. The group is also seeking to build scale in recommerce, where customers buy and sell used technology, while using its existing logistics and retail infrastructure to extract efficiencies.
The strategy mirrors the broader shift among consumer electronics groups towards combining new-product sales with refurbishment and resale, potentially extending the commercial life of products while creating additional revenue streams.
Investors, however, appeared more focused on the near-term outlook than the acquisition. AO’s shares fell sharply despite the expected increase in first-half profit, reflecting caution over the tougher comparative period ahead and the investment required to support future growth.
The Jessops acquisition therefore gives AO another avenue for expansion at a time when the wider UK retail market remains subdued, but investors will be watching closely to see whether the enlarged group can turn its growing portfolio of specialist brands into sustainable sales and profit growth.
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