Retail Navigator AnalysisAO (Financials)
AO’s renewed focus on profitability continued to pay off in the year to end-March 2024 (FY2023). The electricals specialist reported “good progress” in its profit performance despite a decline in sales. Total sales fell 8.7% year on year to £1,039.3m in FY2023, from £1,138.5m the previous year, which management said was “as expected following decisive actions taken to remove non-core channels and loss-making sales”. Sales returned to growth in the fourth quarter of the year. Pre-tax profits grew threefold to £34.3m in FY2023, from £7.6m the year before, reflecting a 3.3% margin, which management said marked “good progress on profit performance” amid the retailer’s “strategic pivot” to concentrate on profit and cash generation.
Retail Navigator AnalysisAO (SWOT)
AO is an online market leader for household appliances in the UK and amongst the largest retailers of major household appliances. This position allows it to capitalise on further growth in the sector.
Retail Navigator AnalysisAO (Strategy)
In a deal expected to complete in the first quarter of 2025, AO’s acquisition of secondhand tech specialist Music Magpie will enhance the electrical retailer’s consumer tech and refurbished tech offerings.
Retail Navigator AnalysisAO (People)
AO founder John Roberts returned as CEO at the start of 2019, after handing the reins to Steve Caunce two years earlier.
Retail Navigator AnalysisJohn Lewis (Strategy)
John Lewis brings back its ‘Never Knowingly Undersold’ price promise “for the Modern Age”. The department store will match 25 retailers’ prices - including M&S, AO and Amazon – both in store and online, adopting AI technology to carry out the checks.
Retail Navigator AnalysisBuy It Direct (SWOT)
Buy It Direct has pivoted from solely selling electronics and domestic appliances into repairing and refurbishing them. It also offers these services to third-parties for a fee in order to maximise the revenues from its Trojan Electronics business.
Retail Navigator AnalysisBuy It Direct (Financials)
Total sales at Buy It Direct tumbled 16% to £354m in the year to end March 2023 (FY2022), with domestic sales falling 15.7% to £341.3m, and the smaller international business suffering a 22.1% slump in sales to £12.7m.
Retail Navigator AnalysisHomebase (Strategy)
Homebase collapses into administration, with up to 70 stores acquired by CDS Superstores, owner of The Range. CDS Superstores group chief executive Alex Simpkin said the group will “continue to invest in the Homebase brand”.
Retail Navigator AnalysisFrasers Group (Strategy)
Frasers Group buys 14.65% stake in Australia and New-Zealand based retail distribution business Accent Group. CEO Michael Murray said: “This investment is an exciting step in the expansion of our international footprint, which is a key growth driver for the group.”