AO World revenue surges as customers continue online shopping post-lockdown
Online electrical retailer AO World said today its revenue surged in the months during and after the easing of coronavirus lockdowns as demand for its products and services was sustained even after its rivals reopened stores in July.
The company said year-on-year revenue in the UK jumped 58.9 per cent to £401.3m and 91.5 per cent to €74.3m (£67m) in Germany for the four months ended 31 July.
“This reaffirms our belief that this is a structural shift in demand where customers have found a better way to shop the electricals category,” the company, which sells washing machines, fridges, cookers, televisions and mobile phones, said.
AO World shares rose 4.5 per cent to 202p this morning.
Retailers like Ocado, Zalando and Boohoo have benefited from the lockdown-triggered buoy in online shopping. Last month, AO World posted a more than 50 per cent rise in annual core profit and said printers, breadmakers and Nintendo Switch video consoles were in demand.
The company also said it remains cognisant of the significant level of economic and customer uncertainty due to covid-19 and the prospect of a December Brexit, and the impact this may have on demand for electricals in the medium term.
A report last month by packaging firm DS Smith showed 62 per cent of 2,000 Londoners surveyed increased their online shopping habits during lockdown, helping add £5.3bn to the UK economy during lockdown as high street shops remained shuttered for months.
Nearly half of people living in London said that they will continue to shop online, and almost 90 per cent of Brits outside London said they will continue to shop as much online or even more post-lockdown the survey found.