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Vodafone Phones 4u Retail

Vodafone ends Phones 4U agreement, joining O2 and Three in leaving the retailer

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By John McCarthy | Opinion editor

September 1, 2014 | 3 min read

Network provider Vodafone has dumped distributor Phones 4u after announcing it will instead focus on its relationship with the newly merged Dixons Carphone.

Phones 4U will be in trouble if EE pulls the plug

Vodafone, which has been deemed the UK’s worst major operator in two separate studies by Ofcom and Rootmetrics, on Monday canceled the agreement, which will now expire in February 2015.

This is despite Phones 4u claiming that it sold 430,000 contracts for Vodafone in the year starting July 2013, accounting for 27 per cent of the retailer’s total sales - worth around £18.5m.

Additionally, Vodafone’s partnership with Dixons Carphone will see Phones4u concession stalls at 160 Currys/PC World stores closed after May 2015.

The network provider earlier this year outlined its distribution plans when a spokesperson said: “[Vodafone will be] reviewing its distribution strategies in the UK and will be opening a further 150 stores and creating 1,400 new jobs.

"As part of that review, Vodafone today confirms that it will be enhancing its distribution partnership with Dixons Carphone from early next year and will not be extending its existing contract with Phones4u, which expires in February 2015.

“We will continue to work with a range of other indirect partners, who represent an important part of our business mix.”

After also losing O2 and Three earlier this year, Phones 4U will only be selling contracts from providers EE, including T-Mobile and Orange, and Virgin Media.

Phones 4u chief executive David Kassler said he was disappointed by the mobile network’s decision but will look for other opportunities, adding: "Transactions and search traffic through our new mobile commerce site are growing rapidly as customers increasingly look to begin their purchase journey online, and they are continuing to choose to shop with Phones 4u because of the great service and value they get across all channels.”

Last month a Phones 4u survey announced that two thirds of customers were confused by the concept of wearable technology, a potential next-step in the mobile market.

Vodafone Phones 4u Retail

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