John Roberts, the CEO of AO World, stated that the upcoming Labour Autumn Budget will impose an additional £8 million wage burden on their company, likely leading to increased prices for customers. The wage bill is expected to rise by £4 million, with an equal increase in employers' national insurance contributions next April, prompting discussions about price adjustments to mitigate the financial impact on the online retailer.
Roberts remarked, "This whole Budget is extremely inflationary for retailers," and questioned whether anyone was naive enough to think that the inflationary pressures would not reflect in pricing. He emphasized that the firm’s strategy is not about cutting costs or jobs, but rather finding efficiencies and growth strategies.
Referring to the overall retail environment, Roberts noted that the majority of AO World’s products are non-discretionary. He commented, "If your fridge breaks, you'll probably buy another one," indicating that despite inflation, essential purchases would remain steady.
Discussing their recent earnings, Roberts mentioned, "We've had a Morecambe and Wise summer sales period - all the right volumes, just not in the right categories," acknowledging that the wet summer weather influenced product sales significantly.
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