Online electrical appliance retailer AO World is taking its first step overseas with the launch of a website in Germany.
The site, which was promised at the time of AO’s stock market flotation in February is launching six months ahead of schedule on 14 October. The company has set up a German warehouse, head office and delivery network in a bid to replicate its UK operation in offering low prices and speedy delivery.
John Roberts, founder and chief executive of AO said: “Germany is our stepping stone to realising our ambition to become the leading online retailer in our categories.”
AO said the early launch of its German site would bring forward some costs but it was trading well in the UK. It said it was continuing to gain market share and was on track to meet full year profit expectations.
Analysts welcomed the reassurance about trading, but shares in AO remain well below the 285p flotation price at 194p. The company has been hit by worries that online retailers are looking over-valued amid difficulties for online fashion retailer Asos as it attempts to expand overseas.