IREU 500

AO World reports growing sales despite ‘challenging environment’

AO World today said that sales via AO.com [IRDX RAOC] in the UK had grown by 6.2% this spring despite a “challenging environment”.

Between April 1 and June 30, the multichannel retailer’s sales rose by 2.5% overall, reflecting a planned decline in its white label website and logistics sales as the retailer focuses instead on its own brand.

The white goods to entertainment systems trader’s primary website is ao.com, which is a Leading retailer IRUK Top500 research and a Top500 retailer in IREU Top500 research. It also operates ao.de and ao.nl.

Chairman Geoff Cooper said, in an AGM trading statement,: “AO World remains on track with its long-term strategic plan and the board expects results for the full year to fall within the range of market expectations. Customer satisfaction continues to be exceptional in all of our territories and the roll-out of further categories across the UK and Europe continues.

“As reported in June, the UK trading environment remains challenging with the MDA market overall seeing lower volumes year on year in Q1. Against this backdrop we are pleased to report revenue growth in UK AO Website Sales of 6.2%.”

European sales, meanwhile, grew by 57.6% – or by 73.1% when calculated in sterling only. Cooper said this part of its business, which centres on those AO websites that sell in Germany and the Netherlands, had performed “in line with our plan”.

When it published full-year results last month, AO World said that its strategy was to become “the best electrical retailer in Europe,” which it aims to achieve by focusing on culture, customers, categories and countries. Its priorities included building long-term brand awareness, especially as it expands the categories that it covers, and its focus on making the customer journey as easy as possible, while staying personal. In the last financial year it also opened a regional distribution centre and head office for its European operations in in Bergheim, Germany.

Mentioned in this piece…

AO.com

AO.com

IRDX: RAOC

AO.com (formerly Appliances Online) was the first website of parent group DRL Limited who also sell kitchen appliances through partnerships with Boots, Next, House of Fraser, B&Q and Iceland. In 2009 ao.com acquired distribution company Expert Logistics enabling it to deliver its own products. (more…)

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  • © Mark Waugh / markwaugh.net