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AO World Takes First European Expansion Step With AO.de Launch Germany(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - AO World PLC was the best-performing stock on the FTSE 250 in early trading Tuesday after the UK online electrical appliance retailer confirmed the next step in its European expansion with the launch of ao.de in Germnay. The company shares were up 3.44% at 198.60 pence per share shortly after the market open. AO World said the German website of ao.com will trade through a newly created subsidiary, AO Deutschland Limited. The website is set to go live Wednesday, six months ahead of schedule, said AO World, which outlined plans for the German website to launch ahead of the year-end (March 15, 2105) at the time of its IPO in February this year. "Of course we have work to do and we will relish the lessons that will no doubt be forthcoming. We are as passionate about building the AO brand in Germany as we are in the UK and can't wait to start bringing German consumers a better way to buy the category, as we have for UK consumers. Germany is our stepping stone to realising our ambition to become the leading online retailer in our categories in our target markets," said Founder and Chief Executive of AO World, John Roberts on the launch. The new site will focus only on major domestic appliances initially, but otherwise will largely mirror that of the UK operation, providing customers with market leading availability, price and speed of delivery for a significant range of products supported by major brands, said AO World in a statement Tuesday. The offering will initially be live for pre-orders with deliveries commencing on the October 14. From the first day of delivery AO.de will offer nationwide next day delivery services and additional services including installation and recycling, said AO World, "We believe this will redefine how major domestic appliances are sold in Germany," as it works to echo the way it operates in the UK. "To achieve this structural advantage we have invested in end to end resource including head office, warehouse and outbase infrastructure and our own last mile delivery capability to completely own the customer experience as we do in the UK. By replicating our UK model and leveraging the investment made in our established UK systems and processes, this infrastructure has been installed within budget and 6 months early," said the company. Also providing a trading update Tuesday, the FTSE 250-listed retailer said trading continues to progress inn line with its IPO plans. While launching the German website early has brought forward all associated costs into the current financial year, the company remains confident, and said that the UK business continues to perform well with overall UK revenue growth and earnings before interest, taxation, depreciation and amortisation on track to meet its full-year expectations. AO World expects to announce its interim results for the half-year to September 30 on November 25. Copyright 2014 Alliance News Limited. All Rights Reserved. |