Online electricals retailer AO World has seen UK growth impacted by driver shortages
(Picture: AO World)Online electricals retailer AO World has warned that first-half UK growth has been impacted by the nationwide shortage of shortage of delivery drivers, as well as global supply chain problems.
It joins a list of retailers cautioning that trading has been knocked by several headwinds. There is a well-documented shortage of HGV drivers and shipping delays following Covid-19 disruption.
FTSE 250 firm AO World, which is led by John Roberts, said: “The challenging market dynamics in both the UK and Germany resulted in lower volumes than expected which affected operational leverage, particularly in the second quarter.”
Total sales improved by around 5% in the six months to September 30, with UK sales some 6% higher.
The company, which sells goods such as washing machines, fridges and laptops online, said it has implemented measures to help mitigate challenges in its logistics operations.
It did not give further details, but some rivals have increased wages for warehousing and distribution staff and looked to bring forward import orders earlier than planned.
AO World expects underlying profits for the full year to be between £35 million and £50 million.
It made £64 million a year earlier when sales were unusually high during the pandemic, and in the current year has been making a number of investments in the business.
