Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

AO World shutting German business to focus on UK market

Online electricals retailer AO World has revealed it is to close its German business after eight years and focus on its UK operations (Alamy/PA)
Online electricals retailer AO World has revealed it is to close its German business after eight years and focus on its UK operations (Alamy/PA)

Online electricals retailer AO World has revealed it is to close its German business after eight years to focus on its UK operations.

The group said it decided the move is the “best course of action” after a strategic review launched in January, and warned that the closure will cost it up to £15 million.

It found the German arm had been knocked by “an intensifying competitive landscape, as customers have returned to pre-pandemic levels of online shopping, a substantial increase in digital marketing costs, and a constrained supply chain”.

AO said the German business will continue to trade for a short period to allow an orderly closure for its customers, suppliers and employees.

The German business accounts for around 10% of AO’s total group-wide revenues each year.

Its demise will see AO focus solely on the UK electricals market at a time when consumer spending on big items is beginning to falter amid general belt-tightening in the face of soaring prices.

AO World issued its third profit warning in six months in April, saying Britons are cancelling repair warranties on their appliances to save money amid rising cost-of-living pressures.

The company said at the time that it is set to post earnings of about £8 million for the year to March, having guided late last year for annual earnings of between £10 million and £20 million.

The alert sent shares tumbling in April, and the stock was down another 3% on Thursday.

Already a subscriber? Sign in

[[title]]

[[text]]