An article in yesterday's Liberation (a particularly lucid French newpaper) caught my eye as being of interest to anyone running their own high-street business. To summarise:

The high-street chain Photo-Station went bankrupt last week. This company has 285 outlets across France, specialising in printing and developing with some film sales and a limited number of low-end cameras. This model worked fine when photography was based on film, they managed to make up to 60% profit margin on prints. With digital, this has decreased to 25% and volumes have decreased. Volumes are increasing today, but they would have to double to be profitable enough.

Same story with the FNAC Service chain of small stores, who will close 28 stores out of 80 before the end of the year. In 2004 the number of films sold decreased by 30% and the number of film prints decreased by 25%, and 2005 looks like being the same.

One bright note is from the PHOX chain. This is mostly made up of independent photographers proposing a complete range of services including printing, home printers material and wedding photos. (Franglais comment: They are also mostly in small towns far from the ultra-dominant FNAC culture megastores in cities). PHOX now have 534 stores, of which 50 have opened in the last four years.

It's a return to the social usefulness of the local photographer.

Charles