August 12, 2022, 5:14 pm | Read time: 3 minutes
The situation in the German market is currently difficult. Even large electronics chains like Media Markt and Saturn have closed stores in recent months. Now another retailer is disappearing, withdrawing completely from both online and physical retail in this country.
In July, Conrad Electronic announced plans to close all locations in Germany and Austria except for one store each. However, the online business will continue. It’s different for the provider AO. It is withdrawing completely from online retail in Germany. Soon, customers in this country will no longer be able to order from the electronics provider.
AO Withdraws from Germany
AO is a German company with roots in the United Kingdom. Since 2014, the online retailer has primarily sold televisions, dishwashers, refrigerators, and washing machines through its shop. The goods are distributed across the country via a total of 18 outbases, a mix of warehouse and store. But now operations have ceased. On AO’s website, customers see a notice that the webshop is no longer active. Additionally, the retailer answers the most important questions in the FAQs that might be of interest due to the closure, such as the procedure for returns and the status of pending orders.
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AO cited the coronavirus pandemic as the reason for the closure. Although it initially led to a surge in online orders, the numbers have recently dropped significantly. At the same time, marketing and delivery costs have risen enormously, while the global chip shortage has sometimes caused long wait times. All these circumstances have led AO to withdraw from the German market.
While it is already no longer possible to place orders in the online shop, the 18 outbases in Germany are still open. It is not yet clear when they will close. AO stated that it wants to enable “customers, suppliers, and employees a structured and orderly closure.”
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Shop with Excellent Reviews
The end of AO in Germany is likely to sadden some, as the online shop was praised by many. The provider scored points with its promise to offer a lower price than other retailers. On the review portal Trusted Shops, AO received top ratings with 4.75 stars. Customers praised the usually fast, uncomplicated, and friendly deliveries, as well as the good offers and service of the shop.
However, apparently, the good ratings did not help. At the beginning of the year, AO announced plans to closely monitor its business in Germany. While figures in the United Kingdom remained relatively stable, revenue in this country fell by 24 percent. After withdrawing from the Netherlands in 2019, the retailer now wants to focus entirely on its home market.