AO World to review operations amid rising costs and falling revenues
Online electricals retailer AO World has seen its UK sales take a hit amid rising costs.
The company, which has its recycling centre in Telford and a distribution base in Stafford, has reported a drop in sales of 12 per cent in the three months to the end of 2021 when compared with a year earlier, although on a two-year basis sales were up 47 per cent.
It also revealed it is launching a review in to its German business after bosses revealed the division suffered a 24 per cent fall in sales in the country.
AO said: "Our German business is being significantly impacted by a number of recent material changes to the local trading environment: competition in the online market has intensified whilst online penetration has returned to pre-pandemic levels; digital marketing costs have substantially increased against pre-pandemic levels; and supply remains constrained.
"We expect these trends will continue for the foreseeable future in the German market."
Options are expected to include a sale of the business.
The latest plans come just two months after bosses said they had seen product shortages, price hikes, and customers reigning in spending in the run up to Christmas.
Prices have gone up by 10 per cent to 12 per cent, with bosses warning of further rises due to inflation and supply chain costs increasing.
