AO.com ditches Tesco concession trial

AO.com concession at Tesco Middleton
AO.com concession at Tesco Middleton
// AO.com has ended its in-store concession trial with Tesco
// The electricals retailer introduced five shop-on-shops in Tesco Extra stores in 2020

AO.com has ended its in-store trial with Tesco, which was the electricals retailer’s first step into the world of physical retail.

The etailer opened five concessions in Tesco Extra stores in the autumn of 2020. However, the trial was interrupted by Covid lockdowns with the shop-in-shops roped off as they were classed as non-essential retail.

The closure of the Tesco concessions, first reported by The Sun, comes as Ao.com struggles during the cost-of-living crisis.


READ MORE: AO shutters German business after 8 years to focus on UK


The retailer lowered its sales expectations for the year at the end of April. It warned at the time that “volatile market conditions, inflationary cost pressures and logistical challenges in the supply chain, together with the escalating cost of living for consumers” will affect its performance.

The retailer said it would focus on cash generation and would optimise its cost base “to align with the expected lower levels of revenues”.

It emerged earlier this month that credit insurer Atradius had cut its cover for the electricals retailer’s suppliers.

Following the news, AO successfully raised close to £40 million earlier this month to boost its liquidity.

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