AO World Reviews German Market Amid Cost Challenges
(Reuters) – British electricals retailer AO World said on Thursday it has launched a review of its German business due to increased competition and rising costs, while online activity returns to pre-pandemic levels.
The online retailer, which sells laptops, washing machines, mobile phones and printers, said its current trading estimates for the 12 months ending March 31 remain in line with its lowered forecast from November. (https://refini.tv/3IBnchI)
The company’s German business is being significantly impacted by a number of recent material changes to the local trading environment, AO World said, adding that competition in the online market has intensified and online penetration has returned to pre-pandemic levels.
AO World said its digital marketing costs for the country have substantially increased compared to pre-pandemic levels and supply remains constrained. The company expects these trends to continue for the foreseeable future in the German market.
The London-listed firm said the review of its German business will include a range of options, without providing additional details.
(Reporting by Chris Peters in Bengaluru; Editing by Sherry Jacob-Phillips and Shounak Dasgupta)
