Forsaking all film for digital
09:03 AM CST on Monday, November 22, 2004
By STEVE QUINN / The Dallas Morning News
PLANO – All Jeff Goulston wanted was a little job security. Having watched thousands of jobs get shipped overseas, the technology consultant saw his long-term prospects drying up.
Camera Stop may be the only store of its kind nationally, industry analysts and manufacturing executives say. And with digital camera sales surpassing film camera sales for the first time last year, it could point to what's ahead in photo retailing.
"A year ago, I might have said he's too early," said Ron Glaz, chief analyst for research firm International Data Corp. in Boston. "Now he's on the cusp where he's positioned himself before the whole market changes. I would say he's set up for the future."
Mr. Goulston opened Camera Stop knowing full well that the family-run shop would have to beat discounters, drugstores, electronics chains and specialty stores to win the digital dollar – particularly during the holidays, when big retailers arm themselves with multimillion-dollar ad budgets.
"People thought I was crazy," said Mr. Goulston, whose longtime passions of photography and technology drove his choice. "But there is nobody in this area who was servicing the needs of the digital photographer from capture to output and everything between – but we do and that's why we're still here a year later."
Sales of digital cameras have been rising steadily since they hit the mass market 10 years ago, while sales of film cameras have started to fall, according to the Photo Marketing Association International.
Even so, the number of households that own film equipment is more than double those that own digital cameras – 74 million to 33 million.
And sales of film prints still lead sales of digital prints by a wide margin – about 26.3 billion to 3.4 billion.
Competitors
Competition comes from electronics stalwarts such as Best Buy, Circuit City, Ultimate Electronics and Conn's, which offer periodic, hard-to-beat discounts on cameras.
Big processors such as discounters Wal-Mart and Sam's Club and drugstores Walgreen and CVS also get a big cut of the business.
Then there are national specialty chains Wolf Camera and Ritz Camera, and established local shops like Competitive Cameras in Dallas or Cooter's Village Camera in Highland Park. These stores have a healthy stock of digital cameras and supplies, but haven't abandoned film.
"Film is by no means dead," said Ramsey Jabbour, owner of 24-year-old Competitive Cameras. "I've had people buy digital cameras, then come back and buy film cameras."
What Mr. Goulston is doing, Mr. Jabbour said, "isn't risky and it isn't cutting edge; he's simply capitalizing on the fastest-growing facet of photography."
For a small shop like Camera Stop to survive, it must attract first-time customers, provide them with options, shower them with service and keep the prices competitive, experts said.
"If people have already bought from him, then he needs them to come back for the rest of the stuff: accessories, printing and archiving," Mr. Glaz said. "If he's a one-stop shop and reasonable, I suspect he will do well."
Ready to adjust
Geoff Wissman, vice president for Retail Forward, a research firm in Columbus, Ohio, said Mr. Goulston must be nimble enough to adjust to the industry's rapid changes and be able to guide customers through the labyrinth of new technology.
"The issue right now is, with the capabilities going up and with how quickly everything is coming out, how much camera do people need to purchase?" he said. "For this kind of specialty store, you need a lot of options in terms of what you can buy, and he needs to play to his strength – that he knows digital cameras and that's all he does."
In a city where big-box retailers dominate, Mr. Goulston's 1,300-square-foot store at Preston and Parker roads in Plano has the charm of a small mom-and-pop business – he and his wife, Lauren, are often joined at work by their dog, a Great Pyrenees.
The store appeals to photographers wanting the point-and-shoots as much as it does the geeks looking to get their hands on CD burners, memory cards or sensor swabs or to print their own photos at one of the three kiosks.
Still, Mr. Goulston operates with the sophistication of an established chain with loyalty programs designed to bring back customers. A camera purchase comes with 10 free prints a month for one year and a one-hour lesson.
It's part of a strategy that includes tracking the competition's pricing, selling equipment made by camera companies rather than electronics makers – and staying digital.
A few months ago, however, Mr. Goulston had a moment of weakness. He now sells film because he "got tired of sending people two doors down to Albertsons to get film."
"We have to take a realistic price approach, but we still want to win their business and keep it," Mr. Goulston said. "Sometimes if it means giving discounts on accessories because they bought a camera, we're willing to work with them."
So far, he said, his store is turning a profit, though he declined to discuss start-up costs or sales.
Mr. Goulston's business and the prospects for growth are buoyed by the growing simplicity of digital cameras, industry executives said.
Digital photo processing services are becoming more available, and beginning photographers don't have to invest hundreds of dollars in computer software, printers and special paper.
Additionally, people are becoming more comfortable with the transition from film to digital cameras. Those who never owned one are willing to try; those who have already owned one are upgrading.
"I don't think the photography culture has changed because people still want prints," said Elliott Peck, Canon's vice president/general manager of sales and the consumer-imaging group. "The ease of use is the driving force behind increasing the business. The industry is doing a great job of letting customers know this is affordable."
Film slowly fading
It may take an entire generation for digital to completely take over the industry, according to manufacturing executives whose companies still roll out new lines of film cameras.
And camera retailers such as Ritz Camera and Wolf Camera will continue to sell the appropriate balance of film and digital equipment.
For now.
"It's not inconceivable that you'll see digital-only stores, but I don't see it in the immediate future," said Dave Dumont, head of merchandising for Ritz Camera Centers, parent company of Ritz and Wolf.
"It's what's driving our business, but as much as the film business is down, there is still such an installed user base with millions who have cameras in the closet and take them out for the holidays."
