AO World has acquired specialist camera retailer Jessops from Dragons’ Den star Peter Jones as it looks to broaden its reach beyond its traditional electricals categories.

The company has completed the acquisition for an undisclosed sum, with the deal funded from its existing cash resources.

The purchase includes the Jessops business and its remaining seven stores across the UK.

AO said the deal forms part of its strategy to expand into adjacent categories and give shoppers more reasons to spend with the retailer.

Jessops brings specialist expertise in cameras and optical technology, while its second-hand photography platform Camera Jungle will complement AO’s existing musicMagpie operation.

AO acquired musicMagpie in December 2024, giving the retailer a presence in the resale of refurbished smartphones, tablets, games consoles and other consumer technology.

The business said it expects Jessops to grow over the next 12 months as it uses AO’s scale, online traffic and operational capabilities to improve efficiencies.

AO founder and chief executive John Roberts said: “I am delighted to welcome Jessops into the AO family.”

He added that the retailer planned to grow Jessops while integrating the photography category into the wider AO business.

Jessops recorded a 6.5 per cent increase in sales to £19.8m in its latest financial year, while its pre-tax loss narrowed to around £1m from £1.17m the previous year.

It was founded in Leicester in 1935 and has faced a turbulent two decades, entering administration on several occasions.

Jones acquired the Jessops brand after its collapse in 2013 and subsequently rebuilt its store network, although the chain entered administration again in 2019 and 2021.

The acquisition was announced alongside AO’s latest trading update, in which the retailer said it expects group revenue to rise 5.5 per cent year on year for the six months to 30 September.

Pre-tax profit is forecast to climb more than 20 per cent to around £21.5m, helped by operational improvements across its mobile and musicMagpie businesses.

Despite the stronger first-half performance, AO kept its full-year profit expectations unchanged as it pointed to planned investment and tougher comparatives in the second half.

Roberts said the business was heading into peak trading with “confidence and momentum” despite continued uncertainty across the wider market.

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