AO World to close German business, focus on UK

UK online electricals retailer AO World is closing its German business, the company said on Thursday.

The move to shutter the business after eight years follows a strategic review of the business started in January which found it had been hit by “an intensifying competitive landscape”.

"This decision was based on the continuing deterioration in the outlook for the German business, as well as the board's responsibilities to shareholders and other stakeholders," AO said.

The review also found customers had returned to pre-pandemic levels of online shopping, digital marketing costs were rising and supply chain constraints were persisting.

AO’s German division accounts for around 10% of the group’s total revenue and will be shuttered at a cash cost of between nil and £15m.

The company said it would now focus on the UK market and on optimising profit and cash generation.