Less home movers hit profits at AO World

LOSSES at AO World almost doubled last year increasing the threat of a takeover by Amazon.

The online white goods retailer’s losses widened to £13.5m in the year to March 31 compared with £7m a year earlier as it warned that demand for washing machines and fridges remained weak.

White goods is the retailer’s biggest market in the UK, but it has blamed struggling sales on fewer people moving house.

Steve Caunce, chief executive at AO World, said: ‘As housing transactions drop the number of white goods that are sold drop. We plan for it to be tough this year, for sure.’

AO World, who revenues jumped 13.6pc to £797m, has previously been seen as a target for Amazon. It has traditionally filled the gap left in the UK by the online retailer, which does not sell large kitchen appliances.

But its latest admission could leave it vulnerable.

AO World also confessed the sponsorship of ITV’s Britain’s Got Talent had fallen ‘short of our expectations’.