AO, a UK-based online electronics retailer, entered the Netherlands in early 2016. However, it has now decided that it will close its Netherlands operations and leave the country after nearly 4 years of operating there. This is not only because the business wants to focus on its expansion in Germany, its only market outside the UK – it is also because the electronics company is currently losing €6 million per year whilst it operates in the Netherlands.
J&P Comments
Although the decision to leave the Netherlands will benefit AO in the sense that they will not be losing as much money, the fact that Germany will be AO’s only location outside of the UK may pose a risk to the business if it does not succeed in Germany.
