UK’s VodafoneThree to invest ‘tens of millions’ in retail consolidation

• UK MNO will launch multi-brand stores across the UK
• Some stores are expected to close but no redundancies are planned
• Three to be made available in 130 new locations

UK operator VodafoneThree has begun the next stage of its integration after announcing plans to roll out multi-brand retails stores across the UK.

The two mobile brands will come together under one roof following the completion of their £15bn merger last year, with plans to remain in every town where the brands currently have a presence.

The retail overhaul will see the brand inject “tens of millions of pounds” into its retail footprint, but is likely to lead to some stores closing in towns where both Vodafone and Three currently have a presence. The operator did not disclose which stores might be affected but it did confirm there are no planned redundancies linked to the transformation.

The combined business will employ around 4,500 people in the retail space – the largest retail of any UK mobile network operator (MNO), according to VodafoneThree. It will also see a significant expansion in reach for the Three brand, which will be available in 130 new retail locations.

The move is backed by figures from the Centre of Retail Research, which found that 28.9% of visitors to the Vodafone and Three stores cited the stores as the single largest sources of information on new phone models – surpassing social media, online articles and websites for customers.

The research also found a fifth of visitors to existing Vodafone and Three stores would not have visited the high street otherwise, leading the operator to conclude retail spending “associated with visiting the stores and surrounding retailers” generates £165m for the UK economy. While this conclusion may be a bit of a stretch, it does highlight why operators continue to invest in their retail footprints in the online era.

Professor Joshua Bamfield of the Centre for Retail Research, said: “The UK high street is facing challenges, with 18,937 store closures and void rates of around 13.7% in 2025. Whilst other sectors like banks are withdrawing from the high street, it’s very encouraging to see retailers like VodafoneThree acknowledge the importance of retail presence to local communities and economies.”

As part of the transformation, VodafoneThree said it will evolve its stores from retail spaces into “hubs” for support and advice, introducing services like ‘Fix and Go’ – which currently offers same-day phone repairs in 18 Vodafone stores – across its wider footprint.

The retail transformation is expected to take several years to complete, but VodafoneThree highlighted stores in London, Manchester, Edinburgh, Birmingham and Cardiff to be among the first to be overhauled.

Jon Shaw, consumer operations director at VodafoneThree, said: “We know how important stores like ours are to the health of the high street and the communities which rely on them.

“From shopping [for] devices, seeking support from our experts or getting their phone repaired, we are proud to serve our customers where they are and reaffirm our commitment to the UK high street. The stores will help bring our brands to more people, offering customers more choice and greater value, as we build the UK’s best network.”

– James Pearce, Editor, TelecomTV