Vita Group will expand its store network after signing a new remuneration and commercial agreement with telco giant Telstra.

Vita has approval for another five stores on top of its current 105 Telstra retail outlets, and has agreed to forego around seven to eight per cent of retail remuneration from July, 2019 – to be be partly offset by a further expansion of up to 115 stores.

The tenure of the agreement between the two companies has been extended to June 30, 2023, with rolling annual extensions subject to annual review.

Following discussions between the parties, Telstra confirmed it was ‘comfortable’ with the model of remuneration applicable for FY18, reflecting changes made up to and including 1 July 2017.

As part of the deal, Vita has agreed to forego some legacy remuneration components, amounting to approximately 7 – 8 per cent of retail remuneration, which will be partly offset by a further expansion to 115 stores from this date.

Vita Group CEO, Maxine Horne, said the new agreement recognised the long-standing strategic relationship between the companies.

“We are very pleased with this outcome, which reflects the confidence Telstra continues to place in Vita to deliver results. With this key milestone achieved, the Vita team are well positioned to deliver long-term value to our customers, our team members, and of course to Telstra and our shareholders. I’d like to thank our shareholders for bearing with us whilst we completed these important negotiations.” said Horne.

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.