Vodafone abandons stores

 

mobile, smartphoneThe Australian wing of telco retailer, Vodafone, is exiting stores following a loss of customers and thus revenue.

The global brand has exited several stores after landlords refused to negotiate, says Fairfax.

Fairfax said a source described the tactic as “cowboy behaviour”, with the retailer abandoning stores midway through lease.

The decision was outlined in a leaked internal email from Vodafone’s national retail property manager.

”[Store] closures have been performed in the last two years due to the significant losses that have been incurred from the impact of customers leaving,” it reads.

“In conjunction with the above customer base loss there have been considerable revenue losses.”

Australia’s third largest telecommunications provider has been dogged by customers complaints in the last few years.

Class action from up to 23,000 disgruntled customers has been looming since 2010, but the case was delayed midway through this year.

More than half a million customers left the telecommunications provider in the half year to September.

It also breached a $3 billion loan this year, but was bailed out by its British parent company and Hong Kong’s Hutchison Whampoa.

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