AO makes smart (phone) move, says GlobalData

The announcement this morning on AO World’s acquisition of Mobile Phones Direct highlights the online electricals specialist’s continued expansion plans as it attempts to steal market share from Dixons Carphone,

Zoe Mills, Retail Analyst at GlobalData, a leading data and analytics company, offers her view:

‘‘AO World has been focused on shrugging off consumer perceptions as a white goods specialist in favour of a well-rounded proposition. This is essential given the impact of weaker consumer demand on big ticket items like washing machines and fridge freezers, as housing transactions stagnate and consumer confidence remains low.

“While AO World already has a sim-free mobile phone range, Mobile Phones Direct gives the electricals specialist access to mobile networks, as well as the opportunity to develop its service proposition with the potential to expand into broadband services and complimentary smart devices. This also allows it to achieve instant access to this market with a well-established player rather than building relationships with network providers and developing this division from scratch, ensuring that it enters this new market with a competitive edge.”

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