Losing the Picture – The Closure of Black’s Photography

On June 9 this week, Black’s Photography announced it would be closing the remaining 59 stores in it’s Canadian chain, already down significantly from the 113 stores operating when Telus bought the retailer in 2009. I was asked two key questions this week: First, What could Black’s done to save the organization, and second, why would Telus buy Black’s in this environment?

My answers were essentially, nothing, and who knows?

Black’s market had evolved in a significantly negative direction over the past decade, as a result of a behavioral shift in their customers. This is no surprise to most of us. The vast majority of pictures taken today are experiential, and the most popular camera is a phone. GoPro cameras are up over 30%. People take a picture or video, edit it on the camera itself, and upload or share it on social media. Photography has become a self-serve hobby relying on immediate gratification.

Even hobbyist and professionals (true photographers) buy their gear elsewhere, including on-line with places like Amazon, and Best Buy. Photographers have the required edit software on their computers, there printers produce quality pictures on good paper, and they can manage their hobby or business in the comfort of their homes. Specialty store Henry’s has a more dedicated following, and has even added stores recently, but they can boast a broader selection of gear and related product and services.

There really wasn’t anything special about Black’s that offered an advantage now, or that could be built into a sustainable business in the future. Anything of interest they could have evolved into already existed with a position of strength. Black’s was an aging dog. This wasn’t a case of a misplaced innovation strategy; every business has a cycle, and this one was coming to an end.

Which brings us to Question 2 – Why would Telus buy a retailer like Black’s? There may have been potential synergies in mind, perhaps co-branding of stores or increasing Telus’ ability to participate in the boom in experiential photography. Anytime you can tap into your customers’ lifestyles is generally a good thing for a firm. Apple and Google both provide photo services in some form, so something could have evolved here given a greater sense of urgency.

Even if there was a plan, it never got the attention it needed to capitalize on any complimentary capabilities and evolve into something interesting. As a result, another fixture in the retail landscape over many decades in Canada is about to disappear in the fashion of record and CD stores, and movie rental shops.

If there is a message for leadership in all of this, it is that it is incumbent on all of us to think about who are customers are; not only today’s customers, but tomorrow’s as well. Then, we need to align our operations to providing what those customers will want. If we can and do, we may endure. If we can’t or don’t, we are done. Ask yourselves this – what are we best at? It has been a number of years since Black’s could answer that question.