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AO World

Summary

AO World is an electrical retailer based in Bolton, England. It operates in the United Kingdom (ao.com), and previously operated in Germany (ao.de) and the Netherlands (ao.nl), specialising in household appliances and electricals.[4] It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

AO World plc
AO.com
Company typePublic limited company
LSE: AO.
IndustryOnline retail
Founded2000; 24 years ago (2000)
FounderJohn Roberts
HeadquartersBolton, England, UK
Area served
United Kingdom
Key people
John Roberts
(Chief executive officer)
Geoff Cooper
(Chairman)
RevenueDecrease£1,138.5 million (2023)[1]
Increase£12.5 million (2023)[1]
Increase£(2.4) million (2023)[1]
OwnerFrasers Group (22.2%)[2]
Camelot Capital Partners (20.4%)
John Roberts (18.3%)
Odey Asset Management (5.2%)[3]
Number of employees
3,373 (2023)[1]
SubsidiariesExpert Logistics Ltd[1]
Websitewww.ao-world.com

History edit

The company was founded under the name Appliances Online by John Roberts in 2000. Prior to this, during a conversation in a Bolton pub, a close friend bet Roberts £1 that he could not set up his own company and disrupt the white goods market by selling appliances online.[5]

As well as selling directly to consumers, the company also sold kitchen appliances on behalf of other retailers such as Next, House of Fraser and B&Q. In 2009 the company acquired the distribution business Expert Logistics enabling end-to-end control of their operation.[6]

In 2013, Appliances Online rebranded to AO.com, which included a redesign of their logo to its current state.[7] In the same year, the company reached one million likes on Facebook[8] and aired their first television advertisement. AO.com was also presented with three awards at the 2013 Retail Week and Drapers ceremony: the Overall Award for Excellence, Best Use of Social Media and Best Pure Play Etailer.[9] They were also awarded fourth place in The Times 100 Best Mid-Size Companies to Work For award and held this position the following year.[10]

In February 2014, the company was floated on the London Stock Exchange as AO World.[11] The IPO allowed the company to raise funds for European expansion[12] and AO's first overseas website, AO.de, launched in Germany later that same year. At the 2014 Retail Week Awards, AO.com won Best Customer Experience, Best use of Content and Best use of Social Media.[13]

In 2015, AO.com announced plans for their second overseas website, AO.nl[14] In the same year, a number of AO employees completed a Germany to Bolton bike ride to raise money for a new playground.[15] AO.com also took home the Employer of the Year award at Retail Week 2015.[16]

In 2016, to support its European expansion, AO opened its 84,000 square metre headquarters in Bergheim, Germany.[17] AO.com also expanded its distribution facility in Crewe with the addition of the Omega building, giving the company 740,000 square feet of warehouse space. AO.com also won the Customer Experience Initiative award at Retail Week 2016.[18]

In 2017, the company announced it would sponsor the 11th series of ITV show, Britain's Got Talent.[19] It also announced that it would extend its sponsorship with Lancashire County Cricket Club.[20] It was also reported that company founder, John Roberts would step down as CEO, remaining on the board as Founder and Executive Director. The former COO, Steve Caunce, took over as CEO.[21] In March, the company announced that it had raised £50 million through share placing to support plans for further growth.[22] The retailer also announced that it was to open a recycling plant in Telford, Shropshire.[23]

In January 2018, the retailer, reported that it had opened a new office in Manchester city centre, which was to be home to the business's in-house multimedia, IT and sales teams.[24] In April, the business announced that it had become one of only twenty businesses in the world to have received over 100,000 Trustpilot reviews.[25] In July, the business launched its new brand campaign, Delivering Tomorrow.[26] It was also reported that it had committed to building a second major fridge recycling facility in the south east of England.[27] The company also confirmed that it had completed the acquisition of the online phone retailer Mobile Phones Direct for £32.5 million as it looks to expand its offering in the mobile phone sector.[28]

In January 2019, it was announced that Steve Caunce would step down as CEO, John Roberts would reassume the role.[29]

AO's recycling plant in Telford processed its millionth fridge in July 2019.[30]

AO Mobile launched in August 2019, offering all UK mobile networks and all handset manufacturers. Roberts described the launch as "a game changer for mobile phone customers".[31]

In August 2019, AO launched AO Finance in partnership with consumer finance provider Newday. AO Finance offers a market-leading rolling credit facility that gives more customers access to essential products through affordable finance.[32]

In October 2019, AO's plastic plant was unveiled as the company announced its ambition to use its recycling capabilities to ultimately make new fridges from the recycled materials extracted from old ones.[33]

Announcing its interim financial results in November 2019, Roberts confirmed that AO would close its operation in the Netherlands to focus on its German business. Roberts explained that the team did not have the bandwidth to fix both markets but remained committed to future international expansion once the German model was proven.[34]

In April 2020, AO Business continued to grow and after only six months in the housebuilders sector, secured over 12,000 building plots.[35] Following a strategic review in July 2022, AO exited the housebuilder market to focus on business to business sectors that better fitted its model. This includes kitchen manufacturers and retailers, such as its partnership with Homebase, which launched in January 2022.[36][37]

In September 2020, AO announced that it would be the new headline sponsor of Manchester Arena. The announcement came as operators ASM Global were submitting a planning application for phase one of its ambitious redevelopment. In a five-year deal, the rebranded AO Arena would see live events resuming once the current COVID-19 related restrictions on venues are lifted.[38]

In October 2020, AO announced plans to open five 'stores-within-a-store' with Tesco as part of a six-month partnership trial with the supermarket.[39] It ended the trial in July 2022.[40]

Following the launch of its unique Value Creation Plan in 2020, an all employee long-term incentive that rewards exceptional value creation, AO announced a restructuring of the plan in September 2022, which will see the scheme begin funding at a share price of £1.[41]

In June 2022, AO closed its German business, which accounted for around 10% of the group's revenue.[42][43] The following month, AO successfully completed a planned £40m capital raise to strengthen its balance sheet and increase liquidity back to historic levels.[44]

In Autumn 2022, AO appointed two new non-executive directors to its board. Former Pets at Home Chief Executive, Peter Pritchard, joined in September and Pret a Manger Global Chief Digital Officer joined in November 2022.[45][46]

At its half year financial results in November 2022, AO upgraded its full year profit expectations following its strategic pivot to focus on cash generation and profitability, which included reducing its cost base by £30m.[47]

In the same month, AO announced it was the new headline sponsor of Manchester Thunder, the current and four time Netball Super League champions.[48]

Operations edit

 
AO delivery vehicle

The company now occupies 50,000 sq ft (4,600 m2) offices and is based in Bolton.[49] The company was named as 63rd in The Sunday Times 'Best Companies to Work For' list in 2011, and received the award for Best Customer Service Operation at the 2011 European Call Centre & Customer Service Awards.[50] In 2012, the company was named 5th in The Sunday Times' list,[51] and in 2013 climbed to 4th, retaining this position in 2014.[52]

In 2019, AO Tech won the Team of the Year – Large Organisations award in the Computing Rising Star Awards.[53]

Advertising edit

The company launched a new advertising campaign on 3 May 2013 to mark the rebranding of the business from Appliances Online to ao.com. The first advert follows a fictional new employee called ‘Dave’ and his over-enthusiastic inductor on his first day at work. A further advert was aired showing ‘Barry Catchpole’.[54] Its adverts feature a version of the Ramones song "Blitzkrieg Bop" in which the words "Hey! Ho! Let's go!" are reinterpreted as "A.O. Let's go!".[55]

In May 2020, AO launched a new advertising campaign with an advert showing how Britain's homes were working harder than ever whilst many people were forced to stay home due to the COVID-19 pandemic. The advert demonstrated the hundreds of thousands of electricals AO have in stock ready for next day delivery across the UK.[56]

References edit

  1. ^ a b c d e "Annual Report 2023". AO World. Retrieved 29 November 2023.
  2. ^ Morgan, Aoife (27 June 2023). "Frasers ups stake in AO World and Currys - Retail Gazette". www.retailgazette.co.uk.
  3. ^ Sweney, Mark (12 June 2023). "Mike Ashley's Frasers Group takes 19% stake in AO World". The Guardian. Retrieved 3 July 2023.
  4. ^ "What We Do". AO World. Retrieved 9 January 2019.
  5. ^ "AO founder claims business started as £1 pub bet". BBC News. Archived from the original on 13 December 2013.
  6. ^ "DRL acquires Expert Logistics". Ertonline.co.uk. 22 July 2009. Archived from the original on 28 October 2013. Retrieved 24 June 2014.
  7. ^ "Appliances Online looking to diversify after 10 Associates rebrand". Prolific North. 2 September 2013.
  8. ^ Charlton, Graham (17 May 2013). "How Appliances Online went from 2,500 to 1m Facebook fans in just two years".
  9. ^ "In pictures: PayPal Etail Awards 2013 winners revealed". Retail Week.
  10. ^ "AO.com named fouth [sic] best company to work for in the UK". The Bolton News. Retrieved 14 January 2019.
  11. ^ "Online Retailer World Surges on London Trading Debut". Bloomberg. 26 February 2014. Retrieved 24 June 2014.
  12. ^ Butler, Sarah (7 February 2014). "Online appliances retailer AO to float on London Stock Exchange". The Guardian. ISSN 0261-3077. Retrieved 14 January 2019.
  13. ^ 2014-07-03T08:45:00. "Drapers and Retail Week PayPal Etail Awards 2014 winners revealed". Retail Week. Retrieved 14 January 2019.{{cite web}}: CS1 maint: numeric names: authors list (link)
  14. ^ "AO.com will launch in the Netherlands". Ecommerce News. 24 November 2015. Retrieved 14 January 2019.
  15. ^ "Bolton business to fund £70,000 playground for ill youngsters". The Bolton News. 19 May 2015. Retrieved 14 January 2019.
  16. ^ "Winners 2015". awards.retail-week.com. Retrieved 14 January 2019.
  17. ^ "Build-to-Suit for AO in Bergheim, Germany". Prologis. 13 March 2017. Retrieved 14 January 2019.
  18. ^ "2016 Winners". awards.retail-week.com. Retrieved 14 January 2019.
  19. ^ "AO.com to sponsor Britain's Got Talent after MediaCom North deal". Prolific North. 6 March 2017. Retrieved 14 January 2019.
  20. ^ Begum, Shelina (12 April 2017). "AO.com extends sponsorship with Lancashire County Cricket Club". men. Retrieved 14 January 2019.
  21. ^ "AO World founder John Roberts steps down as CEO". Financial Times. 22 February 2017. Retrieved 14 January 2019.
  22. ^ Bradshaw, Julia (30 March 2017). "AO World raises £50m from share placing to drive growth plans". The Telegraph. ISSN 0307-1235. Retrieved 14 January 2019.
  23. ^ "AO and TRG merge to form fridge and WEEE recycling giant". letsrecycle.com. 16 June 2017. Retrieved 14 January 2019.
  24. ^ Greer, Stuart (1 February 2018). "AO.com the online electrical retailer moves into the city". men. Retrieved 14 January 2019.
  25. ^ "AO.com reaches 100,000 Trustpilot reviews". BusinessCloud.co.uk. Retrieved 14 January 2019.
  26. ^ "VIDEO: Bolton firm AO creates new Hollywood-style advert - to save the sun!". The Bolton News. 20 July 2018. Retrieved 14 January 2019.
  27. ^ "AO to build fridge plant in South East England". letsrecycle.com. 17 July 2018. Retrieved 14 January 2019.
  28. ^ Stevens, Ben (9 November 2018). "AO World to buy Mobile Phones Direct for £32.5m". Retail Gazette. Retrieved 14 January 2019.
  29. ^ "CEO of electricals retailer AO World to step down, founder to..." Reuters. 31 January 2019. Retrieved 31 January 2019.
  30. ^ Robert Sant, AO Recycling (12 July 2019). "AO hits millionth recycled fridge milestone". letsrecycle.com. Retrieved 3 June 2020.
  31. ^ By George MacDonald2019-08-08T09:17:00 (27 February 2020). "AO launches 'game changing' mobile phone business | News". Retail Week. Retrieved 3 June 2020.{{cite web}}: CS1 maint: numeric names: authors list (link)
  32. ^ "AO launches AO Finance to spread the cost of purchases - Your Money". Your Money. 19 September 2019. Retrieved 13 August 2020.
  33. ^ "Can old fridges be recycled to make new ones? - BBC News". Bbc.co.uk. 29 November 2019. Retrieved 3 June 2020.
  34. ^ "AO World ditches Dutch arm to focus on UK and Germany". Financial Times. 19 November 2019. Retrieved 3 June 2020.
  35. ^ "AO.com B2B division expands team after quick growth - Essential Retail". Essential Retail. 20 April 2020. Retrieved 13 August 2020.
  36. ^ Faithfull, Mark (18 August 2022). "AO.com plunges to full-year loss with further sales fall expected - Retail Gazette". www.retailgazette.co.uk.
  37. ^ Evans, Vicki (18 October 2022). "Kitchen showroom retail is a 'phenomenal opportunity' says AO boss". kbbreview.
  38. ^ "Manchester Arena's new name revealed as bold redesign plans take another step forward". Manchester Evening News. 2 September 2020. Retrieved 2 September 2020.
  39. ^ "AO, let's go... to Middleton - electrical giant to open first ever store at Tesco Extra". Manchester Evening News. 14 October 2020. Retrieved 16 October 2020.
  40. ^ Goldfingle, Gemma (19 July 2022). "AO.com ditches Tesco concession trial - Retail Gazette". Retail Gazette. Retrieved 1 November 2022.
  41. ^ Cameron, Isabel (25 August 2022). "AO to restructure its all-employee Value Creation Plan -".
  42. ^ "AO World shutting German business to focus on UK market". The Independent. 9 June 2022. Retrieved 4 November 2022.
  43. ^ "Electrical retailer AO World swings to loss as costs mount and demand weakens". Financial Times. 18 August 2022. Retrieved 4 November 2022.
  44. ^ "AO World plans £40mn capital raise after sharp share price fall". 6 July 2022.
  45. ^ "Former Pets at Home boss joins AO". Prolific North. 9 September 2022.
  46. ^ Wright, Georgia (1 November 2022). "AO names Pret A Manger global chief digital officer as non-executive director - Retail Gazette". www.retailgazette.co.uk.
  47. ^ "AO upgrades outlook despite widening losses". 22 November 2022.
  48. ^ Allcock, Sam (7 November 2022). "AO bolsters Manchester Thunder in new 5 year sports sponsorship deal".
  49. ^ "Fast-growing DRL signs deal for new Bolton headquarters". Bdaily Business News. 8 August 2013.
  50. ^ "Staff go the extra mile to help their customers". The Bolton News. Newsquest Media Group. 19 October 2011. Retrieved 19 October 2011.
  51. ^ "Retailer 'second best employer' in region". The Bolton News. Newsquest Media Group. 4 March 2012.
  52. ^ "best100companies". The Sunday Times. Archived from the original on 28 February 2012.
  53. ^ "AO Tech Wins Team of the Year Award 2019". ISM Professional. 10 October 2019. Retrieved 13 August 2020.
  54. ^ "Ad of the Day: Appliances Online - 'Barry'". The Drum. 18 May 2013. Retrieved 28 March 2016.
  55. ^ Nic Fildes (3 June 2015). "Tempus: investors look at AO and say: let's go". The Times. Retrieved 16 July 2016.
  56. ^ "AO.com TV advert - 1000s of electricals delivered safely". You Tube. 30 April 2020. Retrieved 13 August 2020.

External links edit

  • Official website


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