// AO to close down German business after eight years of trading
// The electricals retailer said it had “evaluated a range of strategic options”
AO World will shutter its German business after eight years of trading following a strategic review into its performance.
The electricals retailer said it had “evaluated a range of strategic options during the review process” but made the decision to close the German business.
The review found the German business had been affected 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”.
READ MORE: AO sales fall due to weak demand and supply chain woes
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 £15 million.
The business will continue to trade for a brief period to facilitate a structured and orderly closure for its customers, suppliers and employees.
AO said it will now focus on the UK market and on optimising the group’s profit and cash generation.
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