AO.com And Tesco End Concession Pilot

AO.com and Tesco have ended their in-store partnership pilot.

The trial began in October 2020, when the electricals etailer opened its first store-within-a-store at Tesco Extra in Middleton, marking AO.com's first in-store presence. 

Five concessions were in operation as part of the pilot, which was originally expected to last six months, but regulations on non-essential retail meant that the concessions were cordoned off for much of the first four months of 2021.

Commenting on the first store announcement in autumn 2020, AO’s Chief Operating Officer, Danny Emmett said: “As a business with its roots firmly in the North West, we are delighted that our first store is opening in Middleton. Tesco serves millions of people each week and we have always said that AO delivers the best way to buy electricals so we’re excited about bringing the AO experience to even more customers through this in-store trial later this month.”

Tony Hoggett, Tesco’s Chief Operating Officer at the time - he has since moved to Amazon - commented: “We’re excited about this new partnership with AO which will give customers access to a broader range of products and AO’s technical expertise on electrical goods. Our Middleton Extra store is the first of five stores to benefit from an AO concession and we’re looking forward to seeing how customers respond to this trial.”

News of the closure was first reported in The Sun, and followed an announcement in June that AO.com was to exit its German business to focus on the UK.

In its latest trading update, AO.com stated: "In view of the volatile market conditions, inflationary cost pressures and logistical challenges in the supply chain, together with the escalating cost of living for consumers, we remain cautious about our revenue and profit outlook in the near term.  In the coming year, we will focus on cash generation to strengthen the balance sheet whilst optimising our cost base to align with the expected lower levels of revenues.   

"Despite the current market challenges, we remain confident in AO's long-term prospects given the inherent resilience of our business model, the quality of our customer proposition and the ongoing structural shift to online."

AO World plc will release its full year results for the 12 months to 31 March 2022 on Thursday, 18 August 2022.

Source : Insight DIY 

Image : AO.com

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