AO World Warns of Price Hikes Due to Budget

John Roberts, CEO of AO World, has indicated that the company may raise prices to counter an additional £8 million in wage costs stemming from the upcoming Budget, which includes a £4 million increase in employers' national insurance contributions and another £4 million due to minimum wage hikes next April. He described the Budget as 'extremely inflationary for retailers', expressing concern over the inevitable impacts on pricing. Despite the potential price increases, Roberts emphasized that the company's strategy will focus on efficiency and growth rather than cost-cutting. AO World recently reported a strong first half of the year with a 30% increase in underlying pre-tax profits to £17 million, although the wet summer affected product sales in certain categories. The retailer also anticipates a pullback in consumer spending as prices rise, in line with typical inflationary trends. Roberts humorously labeled the sales season as a 'Morecambe and Wise summer', noting the mismatch in product demand due to weather conditions.