AO has ended its in-store tie-up with Tesco, closing its shop-in-shops after almost two years.

AO Middleton shop-in-shop

AO opened shop-in-shops in five Tesco Extra stores in 2020

The electricals retailer launched a physical offering in five Tesco Extra stores in autumn 2020.

The trial, which was intended to run for six months, was interrupted by lockdown regulations in which AO’s shop-in-shop was cordoned off due to its non-essential nature.

In its most recent update to the market, AO said it was “continuing to rationalise, simplify and refocus its UK operations, exiting some lines of business and driving operational efficiencies”. 

The move, which was originally reported by The Sun, comes as part of this strategy, as the retailer grapples with soaring inflation and supply chain issues.

AO closed its German business earlier this year.

The retailer issued its third profit warning in a row in April and launched a £40m share placing earlier this month to secure funds.

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