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£1 bet pays off big style as AO opens new warehouse
09 June 2020
The online electricals retailer aims to use the space to grow its third-party logistics business and is searching for more warehousing.
The warehouse in Crewe is its third in the town.
The new warehouse adds a further 110,000 sq ft of distribution space giving AO just under 1,000,000 sq ft in Crewe, with more on the way as AO actively searches for more warehouse capacity to manage demand for its products and services.
As well as enabling inbound retail sales, this latest warehouse will also help AO to grow its third-party logistics business, which has seen meaningful increased demand over the last two years, as major new clients including Aldi, The Cotswold Company, Simba and Keter benefit from AO levels of delivery service and proposition.
David Ashwell, MD of AO Logistics, said: “This is a great measure of the confidence that our third party clients have in AO. During the Covid-19 pandemic our amazing team has been delivering safely and efficiently, providing a lifeline for AO.com’s customers which in turn, third party clients have benefitted from. As five years of channel shift from stores to online condensed into five weeks, I’m really proud of how the team has adapted to necessary changes without missing a single day of delivery with record net promoter scores over the last three months.
“We’re proud to share our AO service capability with other retailers and third party clients particularly during this difficult time when, thanks to AO, their customers have been able to rely on them. We’re keen to continue to build long-term relationships with retailers and clients who understand the value of an expert, national two-person delivery network.”
The new warehouse has been named after the late Alan Latchford, a co-founder of DRL which went on to become AO.
John Roberts, founder and CEO of AO, said: “Latchford is named after Alan Latchford, who passed away in March. He was on the other side of the famous £1 that led to the creation of AO. On Christmas Eve 1999, he bet me £1 that we couldn’t use the internet to transform how people buy white goods. Twenty years on, the opening of our Latchford warehouse is a lasting tribute to Alan.”
Crewe is also home to AO Logistics’ head office and two distribution centres, Alpha & Omega. AO acquired the two-person delivery company in 2009, and it now offers delivery seven days a week on all items.
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