Vodafone to close more than 1,000 stores

Reuters Finance 2 months ago

DUESSELDORF, Germany (Reuters) - Vodafone (VOD.L) will shut 15% of its 7,700 stores and upgrade some of the remaining outlets as customers buy more online and change their expectations of in-store shopping, chief executive Nick Read said on Tuesday.

The group will overhaul its store estate using data to give insight into what customers want in each location, with 40% of the stores transformed by the end of 2021, Read said.

Around 5,000 of Vodafone’s stores are in Europe, with the remainder in markets such as Asia and Africa.

Customer service offered by Apple (AAPL.O) and Amazon (AMZN.O) had changed expectations, and Vodafone hopes to improve its services faster than former incumbent rivals like BT (BT.L), Deutsche Telekom (DTEGn.DE) and Telefonica (TEF.MC) with targeted and personalized marketing, he said.

“If you believe that 40% of your transactions are going to be digital, then how does that impact why someone goes to a store. The journeys and the purpose of the store changes,” Read told reporters at a briefing in Duesseldorf, Germany.

“(That) means that we will have more ‘experience’ stores, less standard format stores (and) more convenience, and kiosk and click-to-collect stores.”

Read said the group would use new technology such as its AI-powered chatbot to help customers buy products and services in just three clicks.

Vodafone, the world’s second largest mobile operator, however, plans to continue store openings in of Britain.

In September, it announced plans to open 24 new franchise stores in Britain this year, and it is examining the possibility of opening 50 more stores in 2020 in conjunction with new online services.

Although Britain is Vodafone’s home market, it is not in the vanguard of Read’s plan to create a “gigabit” company centered on 5G mobile, ultrafast cable and fiber broadband, and a European pay-TV platform second only to Comcast’s Sky in customer numbers.

Germany will be the engine of growth, Read said, driven by the acquisition of Unitymedia, the largest cable network in the $22 billion deal to buy Liberty Global (LBTYA.O) assets, which was completed in July.

“I definitely think (Germany’s) the heart of the company, because it’s 40% of the free cash flow,” he said. “Now we have a fantastic asset position in that marketplace.”

He said by the 2022 financial year Vodafone’s German broadband network, comprising cable and fiber, would include 25 million premises against 8 million for other fiber providers.

“We have a structural advantage that cannot be closed in any short-time horizon, which is why we really want to drive penetration,” he said.

Unitymedia was being integrated faster than any other previous acquisition, he said, with better execution, despite its significantly larger size.

“We feel very confident on the cost, the capex and the revenue synergies,” he said.

Vodafone is aiming to cut costs by 1.2 billion pounds by its 2021 financial year.

(Company clarifies 7,700 store number is global not European in this Oct. 8 story.)

Source link
Read also:
The Sun › Finance › 1 month ago
VODAFONE has promised customers they won’t have to pay huge bills of up to £10,000 which they wrongly received when using their phones abroad. Some people found their Vodafone mobiles stopped working over the weekend with no explanation and they...
Telegraph › Technology › 2 months ago
Vodafone Group is to cut more than 1,000 shops across its international markets as Britain’s second biggest network operator seeks to move more customers online and to integrate its new German business, chief executive Nick Read said.
Business Insider › Finance › 1 month ago
Sears is closing 96 more Sears and Kmart stores in the US by February 2020, a press release from the retailers' parent company announced Thursday. Included in the closures are 51 Sears and 45 Kmart stores. Only 182 Sears and Kmart stores will be left...
Business Insider › Finance › 1 month ago
Sears plans to close at least 121 Sears and Kmart stores by January. Business Insider compiled a list of the closing stores based on company filings and statements to local media outlets. Employees at several affected stores confirmed the closings when...
Reuters › Finance › 1 month ago
Britain's Virgin Media is ditching BT's mobile network for rival Vodafone from late 2021 in a five-year deal that will allow it to launch new services such as 5G to its more than 3 million customers.
Mirror Online › Finance › 1 month ago
EXCLUSIVE: A number of Vodafone customers claim they have today woken up to bills amounting to thousands of pounds - in some cases the same as a house deposit - after a data outage on Sunday
The Sun › Finance › 1 month ago
VODAFONE is pushing up the price of its broadband with hundreds of thousands of customers set to fork out an extra £30 a year. From December, customers will be paying £2.50 more per month for their home internet when the bill hike kicks in. The price...
New York Post › Finance › 2 weeks ago
AC Moore will shutter all of its arts-and-crafts stores, it was announced this week. The New Jersey-based retailer will close its more than 145 stores, which are largely scattered across the East Coast, its parent company Nicole Crafts announced Monday...
Concord Monitor › 1 month ago
Sears is closing more stores, according to reports, although the fate of the store in Concord’s Steeplegate Mall is still uncertain.According to the Reuters news agency, Sears said that starting in December it will close 96 stores, leaving 182...
The Boston Globe › 2 weeks ago
The company that owns the AC Moore chain of arts supply stores is leaving the industry and is planning on shutting down all of its estimated 145 stores, which includes 12 in eastern Massachusetts and on Cape Cod.
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google