Vodafone Ditching Phones4u in Favour of Dixons Carphone Deal

By Gerald Lynch on at

More trading woes for Phones4u today, as Vodafone has announced it will be pulling its wares from the retailer's stores once its current contract ends in February of next year.

This is despite Phones4u bagging 430,000 new contracts for Vodafone in the year ending July 2013, and securing 125,000 pay-as-you-go customers. It's the end of a partnership worth £212 million in sales for Phones4u, accounting for £18.5 million in earnings for the retailer last year.

Vodafone will instead extend an existing retail partnership with Dixons Carphone, and will be opening 150 new stores of its own, creating 1,400 new jobs. Phones4u has a concessions presence at 160 Currys/PC World stores, running until next May, but this will not be extended following the Dixons/Carphone merger.

While Phones4u is putting a brave face on the news, it'll come as yet another blow as networks seem to lose confidence in the store. Three and O2 have already pulled handsets from Phones4u, while EE has put its relationship with the store under review, pending a final decision. [Yahoo]

Image Credit: Phones4u Store Sign from Shutterstock